Power Cost Adjustment (PCA)

Starting January 1, 2026, Raccoon Valley Electric Cooperative (RVEC) added a Power Cost Adjustment (PCA), also called an Energy Cost Adjustment (ECA), as a line item on members’ monthly electric bills.

The PCA represents the actual cost RVEC pays for wholesale electricity. Depending on market conditions, it can be a charge or a credit. This method helps ensure members pay their fair share of real power costs while allowing RVEC to provide reliable service without frequent base rate adjustments.

What Is PCA?

The PCA adjusts your bill to reflect changes in wholesale electricity costs relative to the budget.

Charge: When wholesale power costs are higher than expected
Credit: When wholesale power costs are lower than expected

This method ensures that costs—or savings—are shared fairly among all members based on electricity use.

Example: If you use 1,540 kilowatt-hours (kWh) in a month and the PCA rate is $0.00745 per kWh, the PCA portion of your bill would be $11.47.

Wholesale electricity costs are not static. They change due to many factors beyond RVEC’s direct control, including:

Fuel price fluctuations (coal and natural gas)
Extreme weather that increases system-wide demand
Growth in large, energy-intensive loads such as industrial operations and data centers
Market volatility and supply chain challenges

The PCA allows RVEC to recover or return these costs transparently, without permanently increasing base rates.

Several factors influence the cost RVEC pays for electricity:

Fuel Costs – Prices for coal and natural gas can rise or fall
Transmission Constraints – Congested or limited transmission lines increase delivery costs
Planned and Unplanned Outages – Power plant maintenance or outages can raise market prices
Rising Demand – Industrial growth, electrification, and data centers require electricity around the clock
Market Volatility – Inflation, regulations, and supply chain disruptions impact pricing

Reducing electricity use during times of high demand helps manage system costs and may limit future PCA impacts.

Members can help by:

Adjusting thermostats (higher in summer, lower in winter)
Shifting laundry, dishwashing, or electric vehicle charging to off-peak hours
Turning off lights and electronics when not in use
Using grills, microwaves, or clotheslines instead of ovens and dryers
Sealing air leaks and improving insulation

Small actions—when multiplied across the membership—can make a meaningful difference.

Several long-term trends are contributing to higher electricity costs:

Early retirement of traditional power plants
Growing demand from electrification, electric vehicles, and data centers
Environmental and reliability regulations
Transmission congestion and aging infrastructure
Labor shortages and higher material costs

RVEC actively manages these pressures, advocates for balanced energy policies, and invests responsibly to maintain reliable, affordable service.

Frequently Asked Questions

RVEC’s Commitment to Members

RVEC is committed to providing safe, reliable, and affordable electricity. The Power Cost Adjustment helps:

Transparently manage rising wholesale power costs
Maintain the cooperative’s financial stability
Support long-term system reliability for all members

If you have questions about the PCA or your electric bill, please get in touch with RVEC—we’re here to help.