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Price-to-Compare
Some customers may want to choose a competitive service provider
if they can save money. Shopping is difficult without at least
a benchmark to make a smart buying decision. For electricity
supply service, the price-to-compare is that benchmark. You
will find this new number shown on your monthly electric bill.
Price to compare is based on the regulated rate per unit of
electricity supply service (kWh), less any competitive
transition charge you would pay to ANEC if you switched to
another supplier.
Price to compare represents only the portion of the total
electric bill which will be competitively priced. You will
continue to pay the same amount to ANEC for the delivery of
electricity regardless of whether the electricity is purchased
from ANEC or from another supplier. ANEC's delivery rates
continue to be regulated by the
Virginia State
Corporation Commission.
ANEC's regulated rate for electricity supply service will
continue to include a monthly wholesale power cost adjustment
(WPCA). Generating plants use a variety of fuel sources to
manufacture electricity (including nuclear fuel, coal, and
natural gas.)
Each month the cost of these fuels is passed through to our
customers. Fuel costs will fluctuate in accordance with the
prevailing market prices of various fuels. As has been the
practice for nearly three decades, ANEC will pass through a
monthly fuel adjustment in accordance with the fuel adjustment
provision of its WPCA clause, representing the cost of various
fuels used to generate the electricity delivered. Under the
methodology approved by the Virginia State Corporation
Commission, ANEC's generation rate cap is based on ANEC's base
generation rates from July 1999, plus or minus the adjustments
made for changes in fuel costs on a monthly basis, pursuant to
application of ANEC's WPCA clause.
Customers should know and clearly understand the terms being
offered by a Competitive Service Provider (CSP). The price for
electricity supply from a CSP might be based on different
criteria, for example, a fixed price for the term of the
contract as opposed to a variable price that may change
depending on how much energy is used in a certain period of
time or during different times of a day, week or month. There
is a potential for seasonal as well as unpredictable fuel
price variations, not unlike similar variations that are common
in other aspects of daily life, including swings in the price
of gasoline, heating oil and natural gas. These fluctuations
are not readily predictable, yet should be factored into any
decision to switch to a competitive supplier. Some CSPs may
offer a price that is higher than the stated price-to-compare,
but other aspects of the offer, beyond price (for example, the
purchase of "green" power), may influence your purchase
decision.
When considering potential savings, the price-to-compare provides
a comparison value, based on the current month's cost, to help
you evaluate offers from competing suppliers. The
price-to-compare is a monthly price "snapshot" that can provide
a basis to make comparisons with other offers CSPs may develop.
ANEC will help you understand the elements and pricing of
electric service so you can develop a basis for comparing the
prices and terms offered by a CSP. The actual savings you can
expect will be influenced by the amount of energy consumed,
when that usage occurs, and the WPCA in any given month.
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