by Zac Perkins, CEO
We’ve talked a lot about Operation Round Up lately, which is now a line item on your electric bill if you have not opted out of the program. Another line item I’d like to explain to you is the power cost adjustment. The power cost adjustment reflects the variable cost Tri-County Electric Cooperative (TCEC) pays its wholesale power supplier Golden Spread Electric Cooperative for the generation and transmission of electricity. It’s part of the price of providing electricity and is passed on as a line item on the member’s TCEC bill.
Cooperative principle number three is “Members’ Economic Participation.” This means members contribute equitably to, and democratically control, the capital of their cooperative. While this principle primarily relates to capital credits, it also applies to TCEC’s goal to provide electricity at the lowest possible cost to its members while still delivering a good value for the money spent. Passing through costs like the variable energy costs incurred in the market helps keep costs fair and equitable for our members.
We separate the power cost adjustment line from the energy cost line on your electric bill to be more open and transparent about where your energy dollars go.
The power cost adjustment represents the variable piece of the power supply. This includes things like the cost of the different types of fuel used for electric generation as well as transmission costs, which are billed based on volume. This adjustment uses a formula defined in our rules and regulations and is calculated every month based on actual power supply costs.
When variable costs are lower than expected, money comes back to the member through the power cost adjustment. This last happened in 2019. When variable costs rise, so does the power cost adjustment.
While we can’t control variable energy costs, we continue to strive to provide electric service at the lowest possible cost by controlling other variables within the operation of our cooperative. We also offer the Co-op Connections program to provide more value by promoting local businesses and helping you save money on everyday items.
If you have any questions about your electric service, please contact us. We’re here to help.