Record cold leads to increased power costs
The moderate temperatures of spring have arrived, but the effects of February’s extremely cold weather, which caused a record demand for electricity across multiple states, still linger.
That record electricity use combined with skyrocketing fuel costs for electricity production during that period mean North Arkansas Electric Cooperative members will have a higher-than-normal power cost adjustment on their bill.
The power cost adjustment is shown on bills as “POWER COST ADJ TO/RTO RIDER.” It is how NAEC adjusts for the increase or decrease in the cost of generating and distributing electricity. These costs change rapidly. Rather than changing the co-op’s base kWh rate every month, we use this line to pass on either additional costs or savings to members. (Eight of the past 12 monthly power cost adjustments have been a credit.)
Each month, the power cost adjustment factor provided by NAEC’s wholesale power provider Arkansas Electric Cooperative Corporation is multiplied by kilowatt hours each member used in the current month. Members will have a credit or debit depending on the cost of energy during a particular billing cycle. As an example, February’s power costs — reflected on April statements each year — usually are higher and lead to a debit.
AECC maintains a diverse mix of generation resources to help keep fuel costs low, but a large portion of its wholesale power generation comes from natural gas. During February’s record cold temperatures, prices for natural gas increased to unusually high levels as supplies decreased.
To help minimize the impact to members, the power cost adjustment accrued during February’s period of below-freezing temperatures will be split across nine months and incorporated into the regular monthly power cost adjustment.
NAEC does not make money on the adjustment. The Arkansas Public Service Commission mandates the co-op only use the adjustment to recover actual fuel costs billed by AECC.
Members struggling to pay their bill have options.
Apply for LIHEAP
The federal government’s Low Income Home Energy Assistance Program provides help for qualifying members with their energy costs during the summer and winter months. LIHEAP is administered by community action agencies. In NAEC’s service area, those are Ozark Opportunities and Northcentral Arkansas Development Council.
Assistance became available Jan. 11, and we encourage members to contact the agency serving their county for more information. The amount of help available varies based on a member’s income, number of people in the household and other factors, and assistance is limited. Ozark Opportunities serves residents in Baxter and Marion counties. Northcentral Arkansas Development Council serves residents in Fulton, Izard, Sharp and Stone counties. Numbers by county are:
- Baxter – 870-425-5118
- Fulton – 870-895-3628
- Izard – 870-368-4329
- Marion – 870-449-6250
- Sharp – 870-994-7353
- Stone – 870-269-4381
Request an extension
Call NAEC at 870-895-3221 or email info@naeci.com to request an extension to pay after the April 14 due date.
Enter a delayed payment agreement
Call NAEC at 870-895-3221 to create a delayed payment agreement. You pay one quarter of the bill by the April 14 due date and the remaining balance in installments added to your May, June and July bills.
Q&A on April bill, power cost adjustment
Why is my bill so high?
The bill you received in March likely was higher due to your increased electricity usage as you and your family kept warm during the below-freezing temperatures. In addition to your electricity usage, the bill you received in April includes a higher-than-normal power cost adjustment as our wholesale power provider recovers costs from February’s period of record cold.
What is NAEC doing to help?
To help minimize the impact to members, the power cost adjustment accrued during February’s period of below-freezing temperatures will be split across nine months and incorporated into the regular monthly power cost adjustment.
What is the power cost adjustment?
It is how NAEC adjusts for the increase or decrease in the cost of generating and distributing electricity. These costs change rapidly. Rather than changing the co-op’s base kWh rate every month, we use this line to pass on either additional costs or savings to members.
Where is the power cost adjustment on my bill?
It is shown on bills as the line item “POWER COST ADJ TO/RTO RIDER.”
Does NAEC make money off of this adjustment?
NAEC does not make money on the adjustment. The Arkansas Public Service Commission mandates the adjustment only be used to recover fuel costs billed by NAEC’s wholesale power provider Arkansas Electric Cooperative Corporation.
How is the power cost adjustment calculated?
Each month, the power cost adjustment factor provided by NAEC’s wholesale power provider Arkansas Electric Cooperative Corporation is multiplied by kilowatt hours each member used in the current month. Members will have a credit or debit depending on the cost of energy during a particular billing cycle.
What do co-ops do to keep the power cost adjustment down?
AECC maintains a diverse mix of generation resources to help keep fuel costs low.
Why is the power cost adjustment so high?
NAEC’s wholesale power provider Arkansas Electric Cooperative Corporation maintains a diverse mix of generation resources to help keep fuel costs low, but a large portion of its wholesale power generation comes from natural gas. During February’s record cold temperatures, prices for natural gas increased to unusually high levels as demand increased and supplies decreased.
How many times has the power cost adjustment been a credit?
Eight of the past 12 monthly power cost adjustments have been a credit.
To whom may I lodge a complaint?
You may call 870-895-3221 to speak with an NAEC member service representative about questions or concerns with your bill.
NAEC is regulated by the Arkansas Public Service Commission. It has approved the use of a power cost adjustment to avoid constant change to electric utilities’ rates. You may contact the commission at 800-482-1164. The mailing address is:
Arkansas Public Service Commission
PO Box 400
Little Rock, AR 72203
Use portal to pay bill, view usage
Members can use the NAEC Member Portal or mobile app to view their electric usage. The free app is available through both iTunes and the Google Play Store. The user ID and password is the same for the portal and app.
To use the app or portal for the first time, members first must create a user ID and password.
- Click on the “Account Login” button in the top right of NAEC's homepage.
- Click on the “Login” link on the right or any selection in the drop-down menu to get to a log-in screen.
- Click the “New User” link and fill in the requested information. The email, last four of Social Security number and last four of phone number you provide must match those NAEC has on file.
If you have trouble, please call 870-895-3221 during business hours of 8 a.m. to 4:30 p.m.