What is the Wholesale Power Cost Adjustment (PCA) and Access Charge that I see on my bill?

So why does it fluctuate?

Because it depends on the cost of power we receive from Great River Energy, and that is dependent on the power market from month to month.

Each year we budget the cost of the Kwh to be a certain amount and we use this as our base figure. Then each month when we receive the Power Bill, we figure the actual cost of the Kwh. The figured base cost is then subtracted from the actual cost. This is what gives us a plus or minus PCA from month to month.

Why can’t KPC budget closer to the real cost?

First we don’t know what is going to happen out on the market with Great River Energy and their costs.

Second, we are very weather-sensitive, meaning that from month to month and year to year, the weather varies, and we have no control. Yes, we do base our budget off of the 5-year average, and this isn’t always the answer.

How do you know how much each person has to pay?

The PCA formula is taken times the number of Kwh's you use for the month. This way everyone pays their fair share.

Why do I have to pay an Access Charge and PCA?

The PCA is based strictly on the cost of the Kwh, and the Access Charge is for the “fixed costs.” What are the “fixed costs? That is what it costs your Cooperative to have a service at your residence. It pays for the wire, poles, anchors, outages, trucks, and ect. The Prime Group Consultants completed a Cost of Service Study for us in August of 2003 and determined that our Residential Access Charge is much lower than our actual costs. We are doing many cost cutting efforts to bring this closer together.