fbpx
Search
Close this search box.

PROVIDING ELECTRICITY AT COST

Power Cost Adjustment (PCA)

As a not-for-profit electric cooperative, Tipmont provides electricity to you at cost — meaning Tipmont does not profit from selling you electricity.

The Power Cost Adjustment (PCA) is an adjustment made to your electric bill each month to reflect fluctuations in the true cost of power purchased from Tipmont’s provider, Wabash Valley Power. The fluctuation is largely caused by changes in the cost of fuel for generation. Tipmont receives no benefit or profit from the PCA.

The PCA appears as a separate line item on each member’s bill each month. This adjustment is applicable to, and becomes a part of, all Tipmont retail rate schedules.

The PCA is calculated each month, which allows Tipmont’s monthly rates to stay consistent rather than changing with each fluctuation in the energy generation cost.

CALCULATED MONTHLY

Power Cost Adjustment History

A note on wholesale power

Some months, the cost of wholesale power is below the base rate. The difference appears on your electric bill as a credit.

A note on wholesale power

Some months, the cost of wholesale power is below the base rate. The difference appears on your electric bill as a credit.

Breaking Down the Power Cost Adjustment (PCA) Formula

F=(A-B)/C+R

The PCA is calculated each month by multiplying the amount charged or credited by the number of kilowatt hours used. For example: If the amount charged is .02420, and 1,000 kWh were used during the billing period, the PCA would be a charge of $2.42.
This is the estimated total purchased power cost billed during the calendar year. Each month’s calculation uses a combination of estimated purchased power costs and actual purchased power costs as they become available.
This is estimated revenue collected from customers for the recovery of purchased power cost for the calendar year. The revenue shall be estimated on the average purchased power costs per kWh included in base rates. Each month’s calculation should be updated with actual purchased power revenue as it becomes available.

This is the estimated kWh sales for remaining billing months in the calendar year, applicable to “F.”

This is the prior period Over / (Under) recovery of purchased power costs.
Search
Close this search box.