The co-op is a not-for-profit electric distribution cooperative, which strives to keep its rates competitive while providing reliable service to its members. As a distribution cooperative, we purchase all our consumer-members’ energy needs from our generation and transmission supplier, Allegheny Electric Cooperative, Inc.

Allegheny both generates and purchases power for Adams through its owned resources or power purchase contracts, which include excess generation from cooperative members alternative generation systems. Allegheny, not Adams Electric, determines the equitable rate for excess generation.

Following best practice standards, all generated but unused kilowatt-hours (kWh) flowing through a distributed generation (DG) meter are credited to members with an interconnected alternative generation system. The exchange rate Allegheny has set for 2026 is $0.0721 per kWh, but is subject to change, as determined by Allegheny, who is the contractual buyer of this energy.

Every additional kWh produced by an alternative generation system, and purchased by Allegheny, displaces one kWh that Allegheny would need to purchase. However, the calculation for the exchange of the energy supply rate isn’t 1-to-1 with the excess generation rate since that rate is only based on a component of the energy supply costs and not all components of it. The buy-back rate for excess solar generation in 2026 is the same rate as what Allegheny will be paying for its most expensive power supply contract in 2026.

Allegheny reimburses its member cooperatives (Adams Electric) for excess generation by its consumer-members based on “avoided cost.” This approach honors the consumer-member’s contribution to the grid while accounting for the costs to maintain the system that allows for that contribution. This avoided cost is determined by what it would cost to purchase an equivalent amount of energy from the open market. Each year, Allegheny negotiates new contracts to secure this energy to achieve the lowest cost possible. As the costs fluctuate, either up or down, so too does the avoided cost.

In addition, due to the manual processing of these special accounts, the co-op does charge a DG recovery fee to all alternative generation members on their monthly bill. For 2026, that cost is $1 per month, but subject to change, as determined by the Adams Electric Board of Directors, who sets rates for the cooperative.

If you have specific questions about your account, please call 1-800-726-2324 or email energyuse@adamsec.coop.