SVEC Announces Increase in Residential Electric Rates
LURAY, Va. — Residential members of Shenandoah Valley Electric Cooperative (SVEC) saw their monthly electric bills increase by an average of about $11 per 1,000 kilowatt-hours beginning May 1, 2026.
According to the SVEC, the charges are “pass-through costs from” its wholesale provider, Old Dominion Electric Cooperative (ODEC) — meaning members pay the same amount SVEC pays for energy generation and transmission.
The increase comes in addition to a previously announced adjustment to distribution costs, bringing the expected total increase to about $17 per month for the average residential member using 1,000 kilowatt-hours of electricity.
The SVEC released additional information via this written statement:
At the ODEC level, the increase is from several factors, including weather and state policy changes. It is intended to stabilize power cost recovery going forward.
In January and February 2026, extreme winter weather and prolonged cold temperatures increased natural gas prices and caused significant power market volatility, driving wholesale power prices even higher, ODEC says.
When temperatures stay low for long stretches of time, heating systems run longer; heat pumps rely on backup electric heat, and ultimately more electricity is used.
Higher prices, coupled with increased electricity usage during periods of extreme winter weather, have resulted in the necessity for an increase to cover power costs, ODEC says.
This ODEC-level increase also incorporates projected compliance costs associated with Virginia’s anticipated reentry into the Regional Greenhouse Gas Initiative, a state policy that requires power generators to purchase carbon allowances.
These additional costs are required under state law and are passed through at cost, without markup.
ODEC only charges SVEC for the actual cost of producing or purchasing energy, with no profit for shareholders or other entities.
ODEC’s rates are also regulated by the Federal Energy Regulatory Commission, which requires ODEC to regularly review its rates to ensure they are recovering their costs — no more, and no less.
It’s the same process for SVEC and the application of distribution rates, which are approved by the State Corporation Commission.
The SVEC maintains more than 8,000 miles of electric lines and serves more than 104,000 meters across Augusta, Clarke, Frederick, Highland, Page, Rockingham, Shenandoah and Warren counties, as well as the city of Winchester.
The SVEC operates as a cooperative, referring to its customers as “members.”
According to the SVEC website:
The difference between SVEC and other power companies is our ownership. Each person who receives service from this not-for-profit electric utility is a member and owner.
Members have a voice in the leadership of the cooperative and in the direction that those leaders take.
Each member has one vote and all members have the opportunity to participate in the annual meeting. At the annual meeting, members elect directors and vote on any proposed bylaw changes.
All profits, or margins, are allocated back to the members based on patronage.
“Equity capital” is a member’s share of the profits, or margin.
Members receive a patronage refund of this equity capital over a period of time based on the policy of the cooperative.
The area’s previous electric service provider, Allegheny Power, sold its Virginia operations (serving approximately 102,000 customers) — to two utility cooperatives in 2010.
Rappahannock Electric Cooperative assumed service to counties east of the Blue Ridge, while the SVEC took over service to counties west of the Blue Ridge.
SVEC’s annual business meeting will be held at 7 p.m. Thursday, August 6, 2026. Members may attend via phone.
Additional information about the meeting may be accessed HERE.