Power Cost Adjustment
The Power Cost Adjustment is a factor applied to cover fluctuations in the charge the Cooperative incurs from its wholesale power supplier. Rather than adjust the energy charges frequently, this factor allows the Cooperative to maintain a constant energy charge while recovering the actual cost of purchasing power to supply to the membership. When the cost of purchased power is above the base cost, the customer is charged a corresponding amount in the form of a power cost adjustment. When the purchased power is below the base cost a credit is applied to the customer's monthly bill.
PCA = (A / B - C ) x B / D
- PCA Power Cost Adjustment factor in cents per kilowatt-hour rounded to four decimals applied on a per kilowatt-hour basis to all metered and non-metered sales of electricity.
- A Cost of purchased power and transmission charges in dollars for the month.
- B Total kilowatt-hours purchased and billed to the Cooperative by wholesale power suppliers during the month.
- C Base cost of power, which equals the average cost of power purchased for the test year period. This figure remains constant in each subsequent monthly calculation at $0.06650 per kilowatt-hour until otherwise changed by the Cooperative.
- D Total kilowatt-hours sold during the month.