LCEC announces Power Cost Adjustment
LCEC reported that a Power Cost Adjustment (PCA) decrease of about 3% (average bill of 1,000 kWh) was implemented for its customers on Aug. 1. It was the second PCA adjustment in three months.
PCA charges are determined to adjust for or anticipate costs for purchased power. The decrease is the result of cost recovery forecasts and budget projections related to purchased power costs passed on from the LCEC power supplier. In June, LCEC reduced the PCA by 9.4%, bringing the total decrease this year to 12.4% per 1,000 kWh.
LCEC reported that power cost adjustments fluctuate and increase or decrease as the cost to generate power rises and falls. Since 2014, there have been seven PCA decreases. There are no margins (profit) earned on the power cost portion of the customer bill. It is solely a pass-through to the power supplier.
Power cost adjustments happen regularly throughout the energy industry. Power suppliers make adjustments based on variable fuel costs related to power production and the costs, or savings, are passed on to customers.
Residential customer bill per 1,000 kWh:
– Base Rate: $99.20
– PCA Rate: $36.80
– Total: $136