The power grid is a complex system. For electric co-ops in this part of the country, the system is owned and maintained on three different levels or tiers. The parts you see close to home, such as poles, wires, meters, and transformers, are just a small portion called the distribution system. That is the part of the system that Raccoon Valley Electric Cooperative (RVEC) is directly responsible for.
The larger power lines and substations that scatter the landscape are part of the second tier called transmission. RVEC is a member-owner of Corn Belt Power Cooperative, located in Humboldt, Iowa, which represents the transmission tier.
The third level of the system is the power generation component. Corn Belt and RVEC are member-owners of Basin Electric Power Cooperative, located in Bismarck, North Dakota, which generates electricity from a diverse energy mix including coal, natural gas, wind, and solar. Additional power comes from the Western Area Power Administration, which generates electricity from dams on the Missouri River.
RVEC pays a monthly power bill to Corn Belt for our share of the generation and transmission cost. Corn Belt then pays a power bill to Basin Electric Power Cooperative and the Western Area Power Administration. Transmission and Generation account for more than 60 percent of your electric bill, and those power supply costs are increasing, putting pressure on your electric rates.
