PCA FAQs

What is the purpose of a PCA?

A PCA helps manage the fluctuating costs to purchase power that largely depends on the wholesale power market. When the cost to purchase power is significantly more than was budgeted, Valley Electric passes the charge to our members, reflecting the actual cost to purchase power.

What is my PCA based on?

The PCA charge on a member’s bill is charged directly by the kWh used during a billing cycle. The total kWh is multiplied by the PCA charge and is a separate line item on the electric bill.

What factors impact the price of the wholesale power market?

The cost to generate power has increased because the cost of natural gas and coal prices are high. Natural gas and coal are fuels that are used in generating electricity.

In addition to the high cost of fuels, during extreme temperatures demand for power has increased causing the cost of power to dramatically increase during these peak events.

What is Valley Electric doing to help control the rising costs?

Although fuel costs are out of our hands, Valley Electric is working hard to minimize the impact on our members. Valley Electric has several power contracts that help our cooperative lock in a lower power cost. The power needs of our members change daily and during these periods when power is used in excess of what Valley has a contract for, we need to purchase from the Western power market to supply our members with the necessary power.

Is this a rate increase?

No. This cost is only associated with the increase in fuel prices that generate electricity. It is a pass-through cost.

How was it determined if there will be a PCA?

Over the course of the 4 years, the rise in power costs has increased dramatically. Valley Electric has absorbed most of the costs of the increase, but can no longer have the ability to do so.