What is the Power Cost Adjustment charge on my bill?
The Power Cost Adjustment (PCA) mentioned on your electric bill refers to the unpredictable variation in power costs. On a month-to-month basis, DCEC compares the amount of power costs collected through its base rates and the actual costs incurred.
The difference between the power costs actually incurred and the amount recovered through the base rates is either refunded to or collected from members the following month through the Power Cost Adjustment charge. A negative Power Cost Adjustment means on your monthly bills reflects a refund and a positive Power Cost Adjustment reflects a charge for the difference between average power cost and the actual cost incurred.
As a not-for-profit electric cooperative, making adjustments through the PCA on a month-to-month basis allows us to keep our operating revenues as close to our costs as possible, avoiding an excessive over-collection or under-collection of margin. Also, remember, when we close our books each year, any excess margin collected above our costs to operate is returned to you, the Member, in the form of capital credits.
What was different about this month's PCA:
Your recent DCEC electricity bill included a higher than average power cost adjustment, or PCA. Due to the recent cold weather, DCEC members are using far more electricity than our current hydroelectric allocation provides for. This means that the New York Power Authority (NYPA) has been purchasing power on the electricity market to meet these additional demands.
The PCA is listed on every monthly bill and is used to accommodate for monthly fluctuations in power costs and will show the adjustment either up or down, as this can be a charge some months and a credit other months.
If you have seen a very high power bill recently, it is likely due to this increased cost of power - reflected through the PCA - as well as an increased consumption of electricity due to additional heating needs in this cold winter.
If DCEC members need to set up a payment arrangement or may require payment assistance, please call our office and speak with out dedicated staff.
