WHAT IS A POWER COST ADJUSTMENT?
A Power Cost Adjustment (PCA) is a mechanism that adjusts members’ electric bill based on fluctuations in the cooperative’s cost of purchased power from Great River Energy (GRE) and wholesale power increases from GRE and Western Area Power Administration (WAPA). Members will see a line-item charge on their billed listed as PCA.
What is a Power Cost Adjustment (PCA)?
A Power Cost Adjustment (PCA) is a mechanism that adjusts members’ electric bill based on fluctuations in the cooperative’s cost of purchased power from Great River Energy (GRE) and wholesale power increases from GRE and Western Area Power Administration (WAPA). Members will see a line-item charge on their billed listed as PCA.
How the PCA Works
The PCA will be calculated based on your monthly kilowatt-hour (kWh) usage, meaning the dollar amount may fluctuate from month to month depending on your energy consumption. There are two components to the PCA:
- Monthly PCA from GRE: This portion may be either a credit or a fee, depending on GRE’s power purchase expenses and their need to pass on a monthly PCA. This dynamic adjustment reflects fluctuations in the cost of power on a month-by-month basis.
- Annual Rate Increases from GRE and WAPA: This portion of the PCA ensures that TWEC can cover the annual cost increases from our power suppliers.
What are the benefits of the PCA?
It allows the cooperative to avoid larger, less predictable rate increases and maintain consistent service quality that our members deserve.
Why is the PCA necessary?
The PCA allows TWEC to respond to changes in the cost of power supply without adjusting base rates, ensuring fairness and flexibility. By tying the PCA to actual usage and supplier costs, we can better align expenses with revenue while maintaining financial stability for the cooperative.
Where Can Members Get Help with High Electric Bills and Billing Questions?
Your household may be eligible for the Minnesota Energy Assistance Program, based on income and size. Visit Account Management for more information.
Members can contact the office for additional billing questions at 1-800-321-8932 or 218-631-3120.
