What is a power cost adjustment?

Posted on Jan 05 2021 in Decatur County REMC

The power cost adjustment (PCA) is a separate line item on each DCREMC bill statement which reflects the increases/decreases in the co-op’s cost of power purchased wholesale from Hoosier Energy. The fluctuation in the PCA is largely caused by changes in the cost of fuel for generation. Because Hoosier is purchasing more power on the open market, at more competitive prices than originally predicted, DCREMC is experiencing a negative tracker – a savings to members.