What is Power Cost Adjustment
Power Cost Adjustment (PCA) is a line item on your bill that provides a credit or an additional charge per kWh based upon the actual cost of electricity as compared to the expected cost.
PCA has been listed, as needed, on the bill statements for many years.
What is the purpose of a PCA?
A PCA helps manage the fluctuating costs to purchase power.
When the cost to purchase power in our regional energy market is significantly more or less than anticipated, our wholesale power provider, Dairyland Power Cooperative, passes the difference to Riverland Energy, and we pass a charge or credit to our members.
What is my PCA based on?
Members receive a PCA credit or charge based on the actual amount of energy used during a billing cycle.
What factors impact the price of power? (Wholesale power market)
- Natural gas and coal prices increasing; both are used to generate electricity. Additionally, many coal plants are in conservation mode due to inadequate coal supplies caused by rail shipping.
- Transmission lines moving renewable energy are congested. This raises energy prices.
- In fall/spring, less electricity is demanded. This is why routine maintenance is performed during this time through scheduled outages. These downtimes cause lower power supply which can increase energy prices.
Are PCA charges expected?
Yes, many times they are necessary. As the cost of wholesale power fluctuates, high demand and inflation challenges, members are seeing- and will continue to see- more frequent power cost adjustments on their electric bills- either as a charge or a credit.
What can you do?
- Visit our energy efficiency page to learn tips to consume less electricity
- You may be able to apply for assistance if you need help paying your bills. Find the numbers here.
- Sign up for SmartHub where you can monitor usage and pin point where high energy demand happens.
What's the power cost adjustment on my electric bill?