OREMC has announced there will be a wholesale power cost adjustment (WPCA) effective on all billings dated February 1 or later. The WPCA will increase from its current credit of -$.00446 to a $.00254 charge per kWh which equals a $.00700 increase per kWh overall. 

How much will the power cost adjustment affect my OREMC bill?

The average monthly increase to members is expected to be $9, but of course will vary by usage. Our calculation is based on the average monthly residential usage of 1286 kWh x $.00700 increase to the wholesale power cost adjustment that goes into effect on February 1.

What is driving the current increase to the wholesale power cost?

Several factors are contributing to the need to increase the WPCA:

• In addition to our regular power requirements, OREMC is also required to have power reserves, or additional power needed during peak demand times in both summer and winter. Because of the extreme weather trends the past couple of years, the amount of power we are required to have on reserve has increased.
• A tight capacity market is driving the cost of reserve power up. Meaning the demand for excess power is greater than the supply, so costs are at a premium.
• Add to that, energy prices (the cost to produce power) are higher due to increasing demand for power statewide, regionally and nationally.
• Significantly higher costs from Georgia Transmission Corporation due to growth in plant (substations, tie lines, new construction) to support increased transmission system capacity, resiliency and reliability to support our own distribution system, which has also grown. By way of example, new OREMC residential service connections were up seven percent (7%) in the first 10 months of 2025 compared to all of 2024.

Since OREMC is a member-owned cooperative and doesn’t have stockholders, we don’t markup these costs for a profit. The cost is simply passed through to members via the power cost adjustment.

What are the key components of OREMC’s rates?

The price you pay for residential power is broken down in to four main components:

• Basic facilities charge: this is a flat fee that covers the cost of maintaining our electric distribution system and service facilities so that when you flip the switch, electricity is available on demand. This is charged whether or not you have any kWh usage billed. Active accounts will be assessed a daily charge. 
• Energy charge: this recovers the cooperative’s budgeted wholesale power costs, as well as the costs to operate our distribution system and invest in system improvements that continually build system capacity, resiliency and reliability.  
• Wholesale Power Cost Adjustment: used to true-up actual cost of wholesale power to budgeted costs. This adjustment may be a credit or a debit. OREMC does not generate power, we buy it and market prices can vary significantly over time compared to budgeted costs. 
• Equity Management Adjustment: used to true-up the difference between the actual and budgeted costs of capital expenditures with the goal of maintaining the cooperative’s equity at a target rate of 38%.  This adjustment may be a debit or a credit. 

 What are OREMC’s current rates?

OREMC’s current are:

Rate Component	Current	Effective February 1
Basic Facilities Charge (monthly)	$40*	$40*
Energy Charge	$ .10650 per kWh	$ .10650 per kWh
Wholesale Power Cost	$ (.00446) per kWh	$.00254 per kWh
Equity Management	$0.00 kWh	$0.00 kWh
TOTAL	$ .10204 per kWh	$ .10904 per kWh

*Based on 30 days billed at a rate of $1.33 daily. 

 

OREMC’s rates as of February 1 will be: 

Winter rates are in effect from October 1 – April 30 

All kWh            10.65 cents per kWh 

Summer rates are in effect from May 1 – September 30 

0 – 1,000 kWh    10.65  cents per kWh 

Over 1,000 kWh   13.30 cents per kWh 

 

Why the two-tier rate structure during the summer?

The overall demand for electricity is higher during the hot summer months. The two-tier structure was established to encourage energy conservation during peak demand times. A higher than usual demand for electricity during the summer months can result in higher energy bills year-around.

Why is a wholesale power cost adjustment necessary?

As mentioned above, OREMC does not generate its own power, we buy it. Like supply and demand of any product, the price of power can go up or down based on market prices. If there are significant cost increases OREMC adjusts for those by increasing the wholesale power cost. If the cost of power decreases significantly, OREMC adjusts the wholesale power cost down.

Have billing concerns or usage questions?

If you have questions or concerns about your OREMC bill, please contact OREMC Member Services at 800-262-5131. They can review your bill with you, explain your usage and discuss billing/payment options.