The Power Cost Adjustment (PCA) was raised in January 2023 to help recover expenses related to the rise in wholesale power costs due to prolonged, below-freezing temperatures in December 2022. Those costs have now been fully recovered and the PCA will decrease by $0.008 beginning with July 2024 billings.
How will the lower PCA affect CVEC members?
The reduction in the PCA will help offset the impact of the new, streamlined rate increase that went into effect on June 12. With the increase in base rates, an average residential bill of 1,160 kWh increased by approximately $8.48. The lower PCA will help mitigate the impact of the rate increase as the same residential bill of 1,160 kWh will see a reduction of approximately $9.28. Some members will see a net reduction in their bill amount, depending on their usage from month to month.
Why increase rates and lower the PCA?
The PCA is a line item on your electric bill that allows CVEC to make necessary adjustments as power costs increase or decrease, ensuring that revenue matches the actual expenditure on wholesale power costs. Now that the power costs from December 2022 have been fully recovered, the PCA is being reduced to reflect current wholesale power costs.
The streamlined rate increase affects the base electric rates, which fund non-power costs such as necessary transmission upgrades and system maintenance. Costs covered under the rate increase include substation and transmission upgrade projects that are required in order to handle higher voltages from AEP and Dominion’s transmission lines.
More information can be found on the Rates page.