BARC To Lower Rates

MILLBORO - Customers of BARC Electric Cooperative will see their power bills decline due to a reduction in fuel costs.

The cost of 1,000 kw hours of electricity in December of this year will be $14.30 less than a year ago.

Bruce King, chief executive officer of BARC, said customers will see lower bills as the company’s cost of purchasing electricity declines.

“BARC is happy to pass those lower costs on to the members/owners,” he said.

BARC is a member-owned cooperative based in Millboro. It serves over 13,000 customers in Bath, Alleghany, Rockbridge, Highland and Augusta counties.

BARC purchases power from Old Dominion Electric Cooperative, which provides wholesale power to 11 cooperatives in Virginia, Maryland and Delaware.

When costs increase from Old Dominion, BARC has a mechanism in place to change the fuel factor rate to recoup the costs. The same mechanism is used to reduce the rate.

The fuel factor is calculated monthly and has been decreasing for the past several months.

“The cost of fuels and the subsequent rate is coming down is coming down in time for the typical higher usage winter months and we’re glad to see it,” King said.

BARC has also offset the fuel increases from power suppliers in the last few years by more than $1,000 to help stabalize margins and benefits to members during the winter months.