A message from Steve Allabaugh, Claverack President & CEO:

New electric rates for Claverack Rural Electric Cooperative (REC) took effect Jan. 1. The bill that members receive in February will reflect January’s electric use, and, in turn, will feature these new rates.

For the typical residential member using approximately 960 kilowatt‑hours (kWh) per month, the overall increase will be about 7.2%. While rate increases are never easy, much of this change is driven by rising costs that are largely beyond the cooperative’s direct control.

The most significant rate change is in generation and transmission (G&T), which is increasing by approximately 11.7%. Power‑supply prices across PJM’s regional grid continue to rise due to higher capacity market prices and a persistent supply‑and‑demand imbalance. 

Simply put, the grid requires more baseload generation to meet the rapidly increasing demand from data centers and the electrification of everything from cars to buildings. The construction of new generation, however, is not keeping pace. Transmission costs have also risen sharply in recent years for Claverack REC members as regional transmission operators upgrade high‑voltage lines and substations to maintain reliability across the electric system. As discussed in the December issue of Penn Lines, these costs are passed through to Claverack members and make up the largest portion of their electric bills.

While these price pressures continue, Claverack REC benefits from its long-standing partnership with Allegheny Electric Cooperative, Inc. (Allegheny), which helps keep rates as stable as possible. Together, our cooperative, the 13 others in Pennsylvania and New Jersey, and Allegheny own a diverse portfolio of generation resources, including nuclear and hydroelectric assets that supply roughly two-thirds of the energy used by our members. 

Because these facilities have more predictable operating costs, they provide a hedge against the sometimes‑volatile open energy market that our investor-owned utility (IOU) counterparts are exposed to. As a result, our partnership with Allegheny helps soften the impact of rising wholesale power prices and ensures our rates remain affordable.

The distribution portion of the rate, which includes expenses for local poles, wires, substations, and line crews, will increase by $3 per month, or approximately 3.2% for the typical residential member. This modest increase reflects inflation and Claverack’s continued focus on proactive maintenance and system upgrades to improve reliability and reduce outages over time.

Even with these adjustments, Claverack’s rates remain highly competitive and lower than those of nearby IOUs. We recognize the challenges that rate increases create and we remain committed to managing costs responsibly while providing safe, reliable power.

The complete 2026 rate schedule is included on this page for your reference. You can also find tips and resources to help reduce energy use and save money here. If you or someone you know is having trouble paying their electric bill, please contact our office so we can connect you with available assistance.