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What is "PCA"?

In recent years, the part of your electric bill called the PCA has caused concern and has prompted many questions.

The PCA, also called a "power cost adjustment" or "purchased commodity adjustment", is a means by which the price charged for electricity is adjusted to correspond with the costs that the City incurs to acquire and provide electric service. Just the same as the price of equity stocks, gasoline or milk can change, so can the price of fuel used to generate electricity and the price of electricity bought from others on the commodity market. The monthly rates of all area utilities are based upon certain expected costs at the time the rate was enacted. The difference between these costs and the actual costs at the time the electricity is used by customers is charged by the various utilities as a PCA, a "fuel cost recovery" charge or "wholesale adjustment", among other names. Without the use of these adjustments, there would be constant rewriting of rates and constant confusion. 

During 2007 and early-mid 2008, Covington's PCA became rather high but declined in late 2008 as the costs paid for electricity to our wholesale providers went down. In December of 2008, costs had declined to the point that no electric PCA was charged for bills sent out in that month, making for a nice Christmas present during an expensive time of the year.

 

13.08.270 Residential service.
A. Applicability. To domestic use throughout the city's service area from lines of adequate capacity.
B. Type of Service. Power will be supplied under this rate to a separately metered family dwelling unit at 115/230 volts, single phase, sixty (60) hertz. Three-phase service may be furnished, where available.
C. Monthly Rate:
Summer - May through October Usage
Base charge .....$10.00
First 600 kWh .....8.6¢/kWh
Next 400 kWh .....11.0¢/kWh
Over 1,000 kWh .....11.8¢/kWh
Nonsummer - November through April Usage
Base charge .....$10.00
First 600 kWh .....8.6¢/kWh
Next 400 kWh .....8.2¢/kWh
Over 1,000 kWh .....7.8¢/kWh
Minimum Monthly Bill: $10.00
D. Environmental Compliance Cost Recovery (ECCR). The amount calculated at the above rate shall be subject to increase under the provisions of the effective environmental compliance cost recovery rider, as provided in Section 13.08.380A. of this chapter.

E.
Purchased Power Adjustment. The amount calculated at the above rate is subject to increase or decrease under the provisions of the effective power cost adjustment clause; Schedule "PCA", as provided in Section 13.08.380B. of this chapter.
(Ord. dated 2/3/14, § 2)
Editor's note—
Ord. dated Feb. 3, 2014, § 2, amended § 13.08.270 in its entirety to read as set out herein. Former § 13.08.270 pertained to residential service (Schedule "R500", 120/240 volts, single phase and derived from Ord. dated Mar. 5, 2001 § 1; Ord. dated May 1, 2000 § 1; prior code § 22-51.
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