NOVEC will give CashBack to customers in March

Northern Virginia Electric Cooperative board of directors has voted to return $2.12 million to current customer-owners who had active accounts on December 31, 2012. Customers will see a CashBack capital credit on their March 2014 bills.

The March CashBack, combined with $1.68 million in CashBack that customers received on their December 2013 bills, totals $3.8 million that NOVEC has returned recently.

NOVEC customers – or members – own the not-for-profit electric cooperative.

Therefore, profits or margins earned by the utility belong to the customers. The Co-op’s customer-elected board of directors decides when to give CashBack returns based on NOVEC’s overall financial condition.

“CashBack is unique to the cooperative business model,” says Gordon Myers, NOVEC manager of accounting.

“We provide customers with their share of the profits after we use revenues to purchase wholesale power, and to maintain, improve, and expand our electricity-distribution system.”

Myers says NOVEC made a profit in 2013 “mainly because our power-supply team did an excellent job of purchasing wholesale power at competitive prices.”

NOVEC assumed full responsibility for power purchasing in 2009. Since then, NOVEC has lowered its rates and provided customers with power-cost-adjustment credits.

Today, Co-op customers are paying approximately 14.5 percent less for electricity than they were prior to 2009, a press release said.

Nevertheless, Myers says customers consumed more power than usual this winter because of the Polar Vortex in January, and very cold days and snow in February.

He was quoted in the news release as saying,” Customers used a lot of electricity this winter just to stay warm. Some people with natural gas heating also used electric space heaters. When the Polar Vortex and snow delayed or closed the federal government and schools, families used more electricity while watching TV, playing video games, and running other appliances. Receiving a CashBack credit in March will certainly help with February bills.”