Members may notice a slightly higher Power Cost Adjustment (PCA) on their bill statements this month. The PCA is a separate line item on each LREC member’s bill statement which reflects the increases/decreases in the co-op’s cost of power purchased wholesale from Great River Energy (GRE). The fluctuation is largely due to changes in the cost of energy on the MISO market. The higher PCA this month is due to increased power costs during the polar vortex in February. PCAs are a month behind, so February’s PCA appears on the March bill statement.
What is the Power Cost Adjustment?
Wholesale power cost is LREC’s largest expense. While a portion of the co-op’s cost of power is already included in our energy rates, the Power Cost Adjustment (PCA) is a pass-through from the wholesale power bill to members’ bills to reflect the actual cost of providing electricity. Using a PCA allows for monthly changes as wholesale energy costs fluctuate, without having to continually restructure rates.