The Wholesale Power Adjustment (WPA) has been a part of Firelands Electric's monthly bills for more than 30 years. The WPA on your bill adjusts for changes (plus or minus) in the price of the wholesale power the cooperative purchases. These changes are due to the fluctuations in the price of coal and other factors affecting the cost of electric power generation and transmission. This adjustment factor is shown on Firelands Electric's bills in the area labeled "W.P.A." and the actual dollar value of the adjustment (WPA x kilowatt-hours used) is shown in the current bill information portion of the statement.
The use of a WPA began in the mid-1970's during the "energy crisis" following the OPEC oil embargo. At that time, the price for all types of energy (oil, gas, coal, electricity) was fluctuating widely and it was impossible to estimate what the cost would be from month to month. To provide adjustments for the changing cost of coal used by Firelands Electric Cooperative's power supplier, Buckeye Power, to generate electricity, the WPA was added to the billing calculations.
Today, as the cost of generating and delivering electricity changes, either up or down, and the bills are adjusted accordingly using the WPA. Increases in the cost of transmission line services and the high cost of complying with EPA Clean Air requirements, greatly affect monthly WPA adjustments.
Beginning with November 2021 bills, the WPA and kilowatt-hour (kWh) charges on the members' bill will be adjusted, to more accurately reflect present wholesale costs of electricity purchased by the cooperative. Firelands Electric's monthly WPA charges will be reduced one cent, and monthly kWh charges will be increased one cent. Combined, these changes in kWh and WPA rates will offset each other 100% and have a net-zero effect on bill amounts. Additionally, the calculation of future average WPA charges applied to the members' bill will change to a 6-month rolling average, replacing the 12-month rolling average implemented in 2014. These changes are being made to reduce future deferred WPA balances, which helps to stabilize bills each month, instead of having large fluctuations.
Also beginning with November 2021 bills and ending with October 2022 bills, a temporary adjustment of $+0.0027/kWh will be factored into WPA calculations. This adjustment compensates for increased costs of wholesale power purchased by the cooperative over the past year but, which to date, was partially deferred due to the cooperative's policy of billing these costs to members on a 12-month rolling average. Collectively, the above changes are being made to ensure fair and equitable assignment and recovery of on-going costs and will continue to allow Firelands Electric Cooperative to provide members with true at-cost rates and services.
If you have questions or would like more information about WPA, or any other item on your bill, please contact us here or call 1-800-533-8658.