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West Florida Electric Cooperative's (WFEC) goal is to provide safe, reliable, affordable, and clean energy to all members and for all members to pay their share of the costs to provide that service. As part of our reliability goal, PowerSouth, WFEC's G&T whole-sale power provider, must maintain sufficient energy generation capacity (the max level of electric power that a power plant can supply at a specific point in time) to serve the PowerSouth system's annual peak load plus reasonable reserves. Peak load is also known as peak demand - when power costs run the highest.

This is the greatest demand on the electric system and can also refer to the time of day/season of the year when that demand happens. PowerSouth, on behalf of its members (like WFEC) must have sufficient generation resources in either owned generation plants or firm purchase of capacity to serve its peak load - plus a 25% winter reserve and a 15% summer reserve. The level of reserves are determined by regulations. WFEC usually sets its yearly peak load in the winter - typically in January or February.

The cost of this generation capacity is fixed. Firm capacity purchases are similar to house rent: a renter must pay regardless of how often they use the house. The costs to operate and maintain bulk power delivery systems (generators, transmission lines, and substations that deliver power to WFEC) remains the same no matter how much electricity is used. Because each member has access to the infrastructure that delivers electricity and must rely on it, at least some of the time, each member must pay their share of these fixed costs. Members cover part of this cost through a basic monthly service or base charge. This fee is required from all WFEC residential members whether or not they buy energy. It's similar to owning a car - you have a set monthly payment but your variable costs (gas/maintenance) vary based on how much you use it. Your power bill works the same way.

The money WFEC pays to PowerSouth is based on either the peak demand set that month or 75% of the maximum peak set during the previous 11 months. All of 2023's peak charges were based on an established peak on December 24, 2022 at 7:15 AM. Since then, an all-time peak was set on January 17, 2024 at 6:45 AM. Because of this, WFEC's peak for all of 2024's billing year has already been established, based on historical information. It is worth noting that these two previous winter peaks, that set our bills for the year occurred at or near sunrise, so solar panels were producing minimal, if any, power. It is also worth noting that those same members with solar panels were using electricity during those times. WFEC's rates are designed to recover this demand cost based on the member's use throughout the year.

Solar members place the burden on PowerSouth to meet their annual winter peak in the same way as a non-solar member. In the late spring and summer, peak loads are in the afternoon. During these peak periods, when solar members' arrays are producing electricity, the peak demand is reduced. That is good for the whole system but the cost for the year's peak costs was already established on those cold winter mornings (as stated above). The cost of this peak charge, which WFEC pays each month for 12 months, is spread across the kilowatt hour use for the entire year. This helps keep your power bill stable. This money has to come from the power bills WFEC collects. These costs are not absorbed by PowerSouth or WFEC, but are shifted to non-solar members, leaving a portion of the solar members' peak costs to be paid by their neighbors. That is unfair to members who do not own solar. This means that the rest of the member are covering all of the peak costs for members who own solar generation. To mitigate this subsidy the solar recovery fee was implemented. The solar recovery fee is a pass-through charge from PowerSouth, our wholesale power provider.

The solar fixed cost recovery charge ensures each member pays their fair share of WFEC's power bill to PowerSouth. WFEC wants to provide affordable electricity to ALL members, including those who do not choose to install solar. Without this charge, members WITHOUT solar would subsidize electricity bought by WFEC from PowerSouth to deliver to members WITH solar. WFEC supports solar energy when it helps meet our mission to provide safe, reliable, affordable, and clean energy to ALL members.