FreeState Electric Cooperative, Inc. members saw an increase to the Power Cost Adjustment (PCA) on their September bill (August usage) again this month.

The reason for this spike is the cost of natural gas, which is driving the overall cost of energy purchased from our wholesale power providers, Evergy and Kansas Electric Power Cooperative (KEPCo). In 2021, 38% of the electric grid power came from natural gas-powered generation, as opposed to just 14% 20 years ago in 2001 and natural gas powered generation continues to grow. 

Remember, there are 3 main components to your electric bill: Electric Service Charge (ESC), Energy Charge and Power Cost Adjustment (PCA).

The ESC is a fixed monthly charge designed to recover the costs of providing equipment, materials, labor, and business overhead necessary to serve each meter, regardless of the amount of electricity (kWh) consumed. These fixed costs are the same for a member using 10 kWh or 5,000 kWh. It is fixed and does not fluctuate monthly.

The Energy Charge (PRICE PER KILOWATT-HOUR), is the unit of measurement for electricity, and how much electricity you use. The price for electricity is set in FreeState’s tariffs, but the amount of electricity that you use varies with each monthly bill. This rate has not changed. FreeState members have not seen an increase to the PRICE PER KILOWATT-HOUR since 2010 (East) and 2012 (West).

The POWER COST ADJUSTMENT (PCA) is a rate mechanism electric utilities use to recover fluctuating purchased wholesale power costs. The PCA FLUCTUATES MONTHLY and serves as a pass-through charge (or credit) related to the cost of producing electricity. You can read more about PCA fluctuation here.

The PCA is increasing as a result of higher fuel prices, which is making the wholesale power FreeState purchases from Evergy and KEPCo, more expensive. The wholesale power bill makes up the majority of a member’s total bill, and that cost makes up 66% of FreeState's overall monthly costs. These costs are not controlled by FreeState.  

For more energy saving tips please visit https://www.energy.gov/.../spring-and-summer-energy...

Here are a few things to consider about energy usage in extreme temperatures:

• The more difference between the outside temperature and the thermostat setting inside, the harder your cooling/heating system works and the more energy it will use, even if the thermostat stays the same temperature.
• The impact of increased energy use on electric bills can be substantial as temperatures rise to historic highs/lows.

As always, if you have questions please reach out to us. You can call our office at 1-800-794-1989 and press zero to talk to a member service representative. Or email us.