Rates

BARC Electric Cooperative’s electric rates are cost-based; that is to say that rates only recover what is necessary to operate and maintain the electric distribution system. Cost-based rates include three main components:

  • Cost of power we purchase from our power suppliers
  • Cost to operate and distribute that power to members
  • A margin to ensure financial and operational stability over time

One of the greatest advantages of being served by a cooperative is we work only to serve our members. Co-ops are not-for-profit 501(c)(12) organizations, meaning we are solely focused on providing safe, reliable, and affordable power. We do not have stockholders demanding returns on investment or expecting large dividends.

Rate Update Effective May 1, 2026

On May 1, 2026, members will see an increase in monthly bills. This is a direct pass-through cost from our not-for-profit wholesale power provider, Old Dominion Electric Cooperative (ODEC). The PCA (Power Cost Adjustment) Factor will be increased by 0.01152 to 0.03009 per kWh, increasing monthly bills for the average Residential member using 1,000 kWh by $11.52 per month.

We know our members count on us every day for the energy they need, and we want you to understand what goes into your bill, why bills are increasing, and what ODEC and BARC are doing to help manage costs.

Why is my bill increasing?

Your rates are adjusting mid-year due to two main factors:

State Policy Changes: Virginia is rejoining the Regional Greenhouse Gas Initiative (RGGI). By law, we must pay for carbon allowances, and these costs are passed through to members without any markup.

Extreme Winter Weather: During Winter Storm Fern (Jan/Feb 2026), natural gas prices skyrocketed from $5 to as high as $135 per unit. Because heating systems ran longer and market prices spiked, the cost to supply electricity rose significantly.

While our internal power generation and hedging strategies saved members from even higher costs, this adjustment is necessary to cover the remaining expenses from this winter.

Purchased Power

Because we generate very little of our own power, this is our single-biggest expense. Power suppliers set the costs that we pay, and we work with our suppliers to keep costs as low as possible while ensuring a stable supply of energy. These costs are collected through the “Electric Supply Services” rates on your bill.

Distribution Expenses

As a distribution utility, our focus is on operating and maintaining the electric system to distribute power from the substation to your home or business. This involves both fixed and variable costs associated with maintaining our rights-of-way, and operating and maintaining the electric system, substations and meters. It also includes administrative expenses and other fixed costs, such as interest expense and depreciation. These costs are collected through the “Electric Distribution Services” rates on your bill.

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Margin

Lastly, all electric cooperative rates include a margin. Although perhaps counterintuitive to the idea of “cost-based” rates, in fact the margin serves two important cost-based purposes. First, it helps finance the replacement and upgrade of electric infrastructure, vehicles and equipment. Second, it ensures stability in the event of major maintenance issues, storm restoration, and unplanned emergencies.

At year-end, operating margins are allocated to each member’s account as capital credits (also called patronage capital). This represents your investment in the cooperative and all its assets. Capital credits are returned to members as financial and operational conditions allow, much like a corporation issues a dividend to its investors.