What is a Power Cost Adjustment?
A power cost adjustment is the modification of a customer’s monthly electric bill caused by an increase or decrease of various components including the district’s direct cost to purchase bulk energy resources.
POWER COST ADJUSTMENT (PCA)
The PCA is an additional energy charge per kWh that bridges the gap between SESD's regular rates and the actual cost of purchasing power for its customers.
Why is the Power Cost Adjustment necessary?
This adjustment is necessary due to the rising cost of generating power. Rising fuel costs directly affect electricity bills because they are a pass-through expense.
Power Cost Adjustment is an increase or decrease, depending on the actual cost of generating and purchasing electricity. SESD manages power costs by working with UAMPS, an electricity cooperative, to purchase a diversified mix of fuel sources. By purchasing a blend of owned and contracted generation resources, the cooperative minimizes the full impact of any individual fuel source cost.