What is Power Cost Adjustment?
The price of everything around us has risen dramatically and the cost to feed and provide for our families has been greatly impacted. Energy is not exempt from these challenges.
Some electric cooperatives are spending a large percentage of their budgets on the cost of wholesale power. Natural gas markets are high, coal availability is reduced due to shipping constraints and renewables have not been able to meet demand in peak periods.
You may have noticed the Power Cost Adjustment (PCA) line item on your monthly bill. The PCA provides for an adjustment dependent on any differences in the base cost of wholesale power, which fluctuates for a variety of reasons. During peak periods when the demand for electricity is much higher, the wholesale provider may need to purchase power from more expensive sources or bring up additional gas-fired generation, which increases the cost of power.
Your co-op knows times are tough as the cost of gasoline, groceries and other essential needs are increasing. Cooperatives are doing everything possible to keep internal costs down, but they cannot control the rising costs of wholesale power.
Our wholesale providers use a diverse mix of fuel sources for electricity, which can be generated from a mix of fuel sources like natural gas, coal, hydro, wind and solar power. This fuel mix helps to reduce generation cost.
As a member of a not-for-profit electric cooperative, you have the benefit of a dedicated staff working to bring reliable, safe, affordable electric services to you.