A Power Cost Adjustment (PCA) is the difference in the cooperative’s monthly increase or decrease in the wholesale cost of power as compared to the cost at the time the current rates were designed. These costs are driven by the price of the fuels used to generate the electricity available for purchase by the co-op.
- A PCA takes large power costs that have exceeded the budget and spreads it over 12 months, rather than increasing the overall rates. It also allows for a decrease, if the power purchase expenses have come in under budget.
- A PCA allows the cooperative to act quickly without permanent adjustments to rates.
- These costs are driven by the price of the fuels used to generate electricity.
- Energy providers across the nation are experiencing increases as well.