Power Cost Adjustment Factor
What is a Power Cost Adjustment (Fuel Charge)?
The Power Cost Adjustment (PCA) is a mechanism that permits utilities to regularly adjust the price of electricity to reflect fluctuations in the cost of fuel, or purchased power used to supply electricity. The cost to make electricity is affected by the price of coal and fuel. The City of Watonga has an established rate per kilowatt-hour to provide electricity to its customers, and this rate does not fluctuate. The PCA is a fuel adjustment charge caused by an increased or decreased cost in coal or fuel. It is shown on the customer’s bill as a surcharge to the price per kilowatt-hour. The City of Watonga does not make a profit from the PCA (fuel charge) it is all returned to OMPA.