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Power Cost Adjustment

Bluestem Electric Cooperative purchases power each month from its power supplier, Kansas Electric Power Cooperative, Inc. (KEPCo), at a wholesale cost to meet the electric energy needs of its members. This cost of wholesale power is a significant cost of providing electric service to the member.

The Power Cost Adjustment (PCA) provides for a monthly adjustment dependent on any differences in the average cost from the base cost of wholesale power. When the kilowatt hour cost to the cooperative is lower than the base cost, there is a credit to the bill. When the kilowatt hour cost to the cooperative is higher than the base cost, there is an adder to the bill.

Wholesale power costs fluctuate for a host of reasons. For example, in the hot summer months, the excess demand for energy requires KEPCo to purchase power from more expensive sources, which includes additional generation costs.

As you can guess, people generally don’t ask questions when their bills are lowered with a credit. They tend to ask questions when their bill is increased. However, consumers can help the cooperative and in turn, themselves by curtailing their usage during the peak hours of the hot days of summer (approx. 3:00 p.m. to 6:00 p.m.).

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