Power Cost Adjustment FAQ’s

A PCA helps manage the fluctuating costs to purchase power that largely depends on the wholesale power market.  When the cost to purchase power is significantly more than was budgeted, Valley Electric passes the charge to our members, reflecting the actual cost to purchase power.

The PCA charge on a member’s bill is charged directly by the kWh used during a billing cycle.  The total kWh is multiplied by the PCA charge and is a separate line item on the electric bill.

The cost to generate power has increased because the cost of natural gas and coal prices are high.  Natural gas and coal are fuels that are used in generating electricity.

In addition to the high cost of fuels, during extreme temperatures demand for power has increased causing the cost of power to dramatically increase during these peak events.

The PCA charge has been on the bill for several years, but Valley Electric has not utilized the charge until now.  The amount will fluctuate depending on the power costs.

Enroll in Smarthub and follow us on social media to receive Peak Alerts to help the cooperative conserve when demand is high in the power market, during extreme temperature periods.  Reducing peak demand helps reduce the amount of power purchased during these peak periods and saves the cooperative and you money.

Although fuel costs are out of our hands, Valley Electric is working hard to minimize the impact on our members.  Valley Electric has several power contracts that help our cooperative lock in a lower power cost.  The power needs of our members change daily and during these periods when power is used in excess of what Valley has a contract for, we need to purchase from the Western power market to supply our members with the necessary power.

The PCA is a direct pass-through of the increase in fuel costs and is a fluctuating charge based on the cost of power.

No.  This cost is only associated with the increase in fuel prices that generate electricity.  It is a pass-through cost.

Many cooperatives are experiencing the same issue across the nation.  The increase in the cost of fuel has affected all electric providers.  This is not a regional issue.

The PCA charge is a fixed item on your bill that will fluctuate depending on the cost to purchase power.

Energy conservation is the easiest way to lower your bill.  You can find some energy-saving tips at https://vea.coop/resources/energy-efficiency-tips/.

There are several assistance programs to help members who may be struggling to pay their electric bills.  Please visit https://vea.coop/resources/energy-assistance/ for a list of places that might be able to help.

Over the course of the four years, the rise in power costs has increased dramatically.  Valley Electric has absorbed most of the costs of the increase, but can no longer have the ability to do so.

The PCA charge is a fluctuating cost that will be reviewed and updated on a monthly basis.

All rate classes and members have the same PCA charge assessed to the bill.