Power Cost Adjustment Update – July 1, 2023

July 1, 2023

Natural Gas Prices and Favorable Weather Conditions Bring Relief to Members

In an exciting turn of events, we have some fantastic news to share with our valued members. As an electric cooperative, our goal is to provide reliable and affordable service to meet the needs of our communities. We are delighted to inform you that the power cost adjuster (PCA) is experiencing a reduction due to favorable market conditions and weather patterns. With natural gas prices lowering since the winter season, the mild weather we have experienced the past few months, and ample rainfall boosting hydroelectric production, we find ourselves in a position to pass on the benefits to our members.

How the contributing factors play a role in this positive change and the advantages they bring to our members:

Natural Gas Prices and Lower Power Cost Adjuster:

Natural gas plays a vital role in electricity generation, and its cost directly influences power prices. Over the past few months, the price of natural gas has decreased. Factors such as increased production, ample supply, and reduced demand have all contributed to this favorable trend. As a result, the power cost adjuster (PCA), which reflects fluctuations in fuel costs, is experiencing a downward trajectory. This means that the portion of our electric power purchasing profile associated with fuel expenses will be lower, providing relief to consumers and helping to mitigate overall electricity costs.

Mild Weather Conditions:

Weather patterns also play a crucial role in determining power demand and prices. This season, we have been fortunate to experience milder temperatures, which have resulted in reduced energy consumption. As air conditioning units and fans operate less frequently, the strain on the power grid is alleviated, leading to more stable and predictable electricity prices. This break from extreme heat benefits both the environment and the member’s wallet.

Hydroelectric Production and Rainfall:

Another contributing factor to the lower power cost adjuster is the significant rainfall and hydroelectric production we have witnessed over the past six months. The availability of water resources for hydroelectric plants has remained robust, allowing for increased generation of clean and renewable energy. Hydroelectric power is not only environmentally friendly but also cost-effective. The abundance of rainfall has positively impacted water levels in reservoirs, ensuring a steady supply of hydroelectric power and reducing the reliance on more expensive energy sources.


At Valley Electric, we are thrilled to share the good news of a lowering power cost adjuster due to the drop in natural gas prices, mild summer weather conditions, and robust hydroelectric production. These positive developments contribute to reduced electricity costs, benefiting our members and the communities we serve. As we navigate forward toward a cleaner power portfolio requirement, we remain dedicated to providing reliable and affordable service. Together, we can embrace the advantages of these market conditions and celebrate the relief on our electric bills.