Beginning June 1, 2026, the Power Cost Adjustment (PCA) charge on your bill will increase by about 1.4¢ per kWh to recover the higher cost of electricity that needed to be purchased from the market early this year. A cold spell in January and February revealed serious challenges in the regional electricity market that supplies our cooperative. A flawed market design allowed electricity suppliers to charge prices significantly above what it cost them to generate the electricity. The financial impact from the electricity purchased during that cold spell will be reflected in this PCA adjustment on member bills.
We know any rise in costs is difficult, and we’re committed to being transparent about why this is happening and what we are doing to help.
What is the Power Cost Adjustment (PCA)?
The PCA is a separate line on your bill that reflects the actual cost we pay to purchase electricity. Because power market prices fluctuate, the PCA ensures those costs are passed through dollar-for-dollar, with no markup, to our member-owners.
Why is the PCA increasing?
Wholesale electricity prices spiked dramatically during late January and early February, reaching up to 30 times higher than normal for short periods. The extra electricity needed for just two weeks cost $14 million more than was forecasted based on historical usage data and weather patterns. These price spikes were not caused by worse weather or dramatically higher demand compared to last year. Market design flaws and limited available generation allowed suppliers to charge prices far above the actual cost of producing electricity.
What this Means for Members Now?
CVEC had to purchase additional electricity during the two-week cold snap. CVEC purchases the majority of electricity ahead of time using a portfolio approach that is based on historical member usage and weather patterns. Buying electricity ahead of time allows us to take advantage of competitive pricing. When members use more energy than was forecasted and purchased in advance, CVEC must buy that electricity from the market at substantially higher prices. By law, CVEC must recover the full cost of electricity purchased on behalf of members at no profit and no loss. As a result, the Power Cost Adjustment (PCA) on member bills will increase approximately 1.4¢ per kWh beginning June 1, 2026.
What this means for Members Going Forward
PJM is a regional power grid operator that balances supply and demand in real-time, coordinates transmission lines, and ensures the reliability of the electric system we all depend on. Electricity demand in the PJM region is expected to keep growing due to electrification and data center development. Until changes are made to address market flaws or more generation being built, price volatility is likely to continue.
What Your Cooperative is Doing
- We are pursuing short-term protections and long-term solutions to keep electricity reliable and affordable.
- Advocating for members by voicing concerns with PJM and regulators about unfair market pricing and design flaws, while supporting better planning and stronger oversight of wholesale markets.
- Reducing exposure to extreme market prices by exploring new power supply options, adding local solar generation, and investing in battery storage to avoid buying electricity during the most expensive hours.
- Planning for future demand by evaluating programs that reduce electricity use during peak periods and working to strengthen long‑term reliability as demand grows across the region.
These initiatives take time to implement, but they are important steps toward long-term savings and greater reliability.
What You Can Do to Help Reduce Summer Usage
We understand that higher costs create challenges, and we remain focused on delivering safe, reliable, and affordable power to our communities. We also want to make sure our members understand how CVEC purchases power and the steps you can take to help offset the increases. Small changes add up, especially during peak demand periods when electricity is most expensive.
- Smart Cooling Tips: Set thermostats to 78°F or higher when home. Use ceiling fans to improve comfort (turn them off when you leave the room). Keep blinds and curtains closed during the hottest part of the day.
- Improve Home Efficiency: Replace air filters regularly. Seal air leaks around doors and windows. Schedule routine maintenance to keep heat pumps running more efficiently. Consider upgrading to ENERGY STAR® appliances.
- Reduce Peak‑Hour Usage: Avoid running large appliances (laundry, dishwashers, ovens) during late afternoon or evening, especially when the temperature is highest. Spread energy use throughout the day and overnight hours when possible.
- Be Mindful of New Electric Loads: Electric vehicles, heat pumps, and smart devices all add usage.
- Charging or using energy‑intensive devices during off‑peak hours helps reduce system strain and costs.
- Voluntarily reduce energy consumption when peak alerts are issued: Follow CVEC on Facebook and make sure your correct email address is on file to receive alerts. Reducing consumption during peak alerts helps ease strain on the electric grid and reduces the amount of electricity CVEC must purchase from the market at higher prices.
You may also visit the "Understanding Power Costs" or "Save Energy & Money" pages for more information.
CVEC exists to serve its members, not generate profits. Every dollar collected goes toward the safe, reliable delivery of electricity for our members. While we cannot control wholesale market prices, we are committed to advocating on your behalf, investing wisely, and helping you manage energy costs.
If you have questions or would like help managing your energy use, contact Member Services at 800-367-2832 or by email at ms@mycvec.com. Our team is here to assist.