FACTORS AFFECTING YOUR RATES

• COST OF GENERATION & TRANSMISSION OF ELECTRICITY
  The electricity distributed by RRV is generated and transmitted through Western Farmers Electric Cooperative (WFEC) of Anadarko, OK. Red River Valley REA and 18 other Cooperatives own WFEC, which makes members of each Cooperative part owners in one of the largest electric generation networks in Oklahoma. Costs associated with the generation and transmission process include:
  • FUEL
    Electricity generated by WFEC is produced using both simple and combined-cycle natural gas combustion along with some of the most advanced clean coal technology in North America. The fluctuating costs of these fuels make up a significant part of the total bill you pay. By aggregating consumer load through WFEC, partnering Cooperatives are better able to control these costs.
  • GENERATION & TRANSMISSION INFRASTRUCTURE
    Maintenance of generation and transmission facilities (poles and wires) help insure safe and environmentally responsible operation. Since WFEC is Cooperatively owned, these costs are shared across 19 Cooperatives, again reducing the amount RRV members are required to pay.
  • DEMAND
    High consumer load (demand) during peak times can lead to significant increases in the cost of power. Reasonable power use during the hottest days of summer or during major emergencies can help reduce system demand. RRV offers time-of-use and curtailable rates to qualifying consumers who demonstrate load-limiting ability during peak times.

 

• LOCAL COSTS OF BRINGING ELECTRICITY TO THE METER
  RRV is a democratically governed electric Cooperative. This means that the board members you elect hire a general manager who, in turn, supervises the daily operation of the Cooperative. The board establishes the mission and goals of the Cooperative and approves the annual budget. The general manager oversees business operations and employs personnel to perform tasks in the most cost-effective manner possible. Managed costs include:

• DISTRIBUTION INFRASTRUCTURE
  With over 2,500 miles of line and nearly 13,000 meters to maintain, the RRV distribution infrastructure represents one of the largest ongoing costs to the member. Through preventive maintenance, strategic upgrades and investment in new technologies, RRV works daily to insure that costs remain at the lowest possible level.
• BILLING & ACCOUNTING
  The day-to-day operation of a business the size of Red River Valley REA requires a number of professionals from a wide variety of backgrounds. Through ongoing training and the implementation of numerous technologies, RRV’s strives to maintain the highest level of customer satisfaction. Automated meter reading and payment by phone are two examples of new and expanded billing services provided by RRV.
• CATASTROPHIC SYSTEM DAMAGE
  Inclement weather can have a devastating effect on an electrical distribution system. Replacing just one mile of line destroyed by ice or wind can cost well over $18,000. Natural disasters can greatly increase the costs of operation. RRV does its best to invest responsibly to insure that the necessary resources are available in catastrophic times.
• METER DENSITY
  Simply put, as more consumers connect to Red River Valley REA lines, the less each member has to pay toward fixed costs. RRV partners with a wide range of economic development groups across our service territory and the state to promote rural growth. We love rural Oklahoma and are doing our best to build the communities we service!
• REGULATION
  As a nonprofit, member-owned utility, Red River Valley REA operates within the guidelines of federal statutes and the regulations of numerous agencies including the U.S. Department of Energy and the U.S. Department of Agriculture (USDA). Partial funding for improvements and expansion are obtained through loans from the Rural Utility Services - a division of the USDA. The general manager and members of your Board of Trustees serve on committees at the state and national level to insure that your voice is heard on issues related to electric Cooperatives and rural Oklahoma.