At Hancock-Wood Electric Cooperative, we are proud to serve our members with a focus that goes beyond simply keeping the lights on. As a not-for-profit, member-owned cooperative, every decision we make is rooted in what’s best for the people and communities we serve. That means maintaining reliable service, investing in our system for the future, and working diligently to manage costs in a way that benefits our membership.

Electricity costs can be complex, and many factors influence what ultimately appears on your monthly bill. One important component is the Power Cost Adjustment. The PCA reflects the difference between the projected cost of power — set in advance — and the actual cost we pay for electricity from our generation supplier, Buckeye Power. Because energy markets can change due to fuel prices, weather, and demand, this adjustment helps ensure that costs are accurately reflected over time.

While the PCA can sometimes increase or decrease based on external factors, our goal at Hancock-Wood is always to reduce volatility and provide as much stability as possible for our members. We understand that predictable bills matter to families, farms, and businesses trying to plan and budget effectively.

At this time, we are pleased to share that our PCA is currently negative. This is the result of our cooperative- owned generation supplier’s costs coming in lower than originally projected. In simple terms, the cost to produce the electricity you use has been less than expected — and we are able to pass those savings directly back to you. Instead of experiencing sharp or unexpected increases, you are benefiting from a more stable PCA charge on your bill. Reducing fluctuations not only helps with monthly budgeting, but it also reflects our ongoing efforts to manage power supply costs responsibly and efficiently.

Situations like this highlight one of the key advantages of the cooperative model. Because we operate on a not-for- profit basis, any margins are returned to members in the form of capital credits or used to maintain stable rates and reliable service. When costs come in lower, as they are now, the benefit flows directly back to you — not to outside shareholders.

Of course, the energy landscape is always evolving. Market conditions, regulatory changes, and long-term generation planning all play a role in future costs. That’s why we continue to work closely with our power supplier and industry partners to make informed, strategic decisions that protect both reliability and affordability.

We also believe that communication and transparency are essential. We want our members to understand not just what they are paying, but why. The PCA is one example of how we strive to be open about the factors that influence your bill, while actively working to keep those costs as stable and manageable as possible.

As we move forward, our focus remains clear: deliver safe, reliable electricity at the lowest possible cost, while continuing to serve as a trusted partner in the communities we call home.

Thank you for being a member of Hancock-Wood Electric Cooperative. Your trust and support are at the heart of everything we do.