The electric portion of your utility bill includes a line item for the Power Cost Adjustment (PCA). The PCA is primarily due to the monthly fluctuation in costs to generate and deliver the electricity you use that are charged by the Utility’s power provider (SWEPCO). These fluctuating costs are not included in rates and passed through to the customer. The utility does not make additional revenue from the PCA.
An estimated portion of the fuel cost is included in the rates, however as the costs to produce and supply energy, primarily driven by the variability in the cost of fuel, the PCA ensures the full cost to provide electricity is recovered and available to pay for the power that is provided. All customer bills have included this charge for many years, however with current costs the charge is more apparent on your bill.
Since the Spring of 2021 the cost to produce electricity has increased significantly. This is the longest sustained increase in the PCA that the utility has experienced in the last 15 years. Our energy provider has provided the following information regarding the current market conditions and increased fuel costs here.