August 1, 2023 – A Power Cost Adjustment (PCA) decrease of approximately 3 % (average bill of 1,000 kWh) will be implemented for LCEC customers on August 1. This is the second PCA adjustment for LCEC members in just 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 so far this year to 12.4 % per 1,000 kWh.
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 $136.00