PCA Is Not A Percentage of the Rate for Electrical Cost

PCA Is Not A Percentage of the Rate for Electrical Cost

What the PCA cost is not determined by a percentage of what your rate is for the electrical cost.  Last year when the PCA was .1196 the City did not have an included standard rate added to our rate charged for electrical usage.  Yes, because the cost to produce electricity was elevated and passed on to us, the city did eventually pass that cost on to our customers, after not doing so for approximately 18 months.  In the past four months the cost have decreased therefore what we pass on to the customer decreased.

This FY we included a standard PC rate to our rate making that cost for residential customers .10362.  Because of this, part of what is paid in the rate for electrical cost is added to the PCA collected now to take care of the Power Purchased Expense. It is anticipated that the PCA should not be any more than .04 cents any given month this year for residential or commercial customers as long as cost are down.

PCA is done on a fixed number not a percentage of what your rate is. This is the same procedure of other municipalities and COOPs in our area.  They have a standard PC rate plus adding what is needed to make sure the cost for power purchased is covered.  Some do the same amount each month, while some let that cost vary depending on what the cost is for them.

Just out of curiosity, I did compare our rate and other municipalities and COOP rates including the standard PC rate and the PCA charged in our area; their PCA charged compared to the electrical rate  they charged was from 30% to 36% of the electrical rate just like what our comparison is.

If you want to look at the rates they are on our website.