PCA goes negative for several months in 2019
By Zac Perkins, CEO
I hope all of you have noticed over the last several months TCEC has been able to take advantage of lower than expected energy prices in the market to give you a credit back on your bill through the power cost adjustment (PCA).
The negative PCA shows that when the rate collects more than variable energy costs, we give the savings back to you immediately. That is why the power cost adjustment line is separate from the energy cost line on your electric bill. It allows us to be more open and transparent about where your energy dollars go.
The ‘power cost adjustment’ represents the variable piece of the power supply. This includes things like the cost of whatever fuel is used for electric generation as well as transmission costs, which are billed based on volume. This adjustment uses a formula defined in our Rules and Regulations and is calculated every month based on actual power supply costs.
When variable costs are lower than expected, money comes back to the member through the PCA. This is only the second time in the nearly 13 years I’ve been here that has happened.
The primary driver for the negative PCA over the summer was unbelievable cheap natural gas. Our power supplier, Golden Spread Electric Cooperative, can run its gas-fired units more, which makes them more efficient and thus lowers the cost of energy for everybody.
This negative PCA line item on your bill is a way we give back to the members in real-time. We’re happy to do it and I hope it continues. Realistically, at some point natural gas prices will rise, resulting in higher variable energy costs. However, we will continue to strive to provide electric service at the lowest possible cost.
If you have any questions about your electric service, please contact us. We’re here to help.