Power Cost Adjustment Drops

Paducah Power System cut the utility’s Power Cost Adjustment (PCA) by nearly 40%, July 1.  The PCA dropped to $0.0215  per kilowatt hour.
The PCA is a billing practice used by utilities to make sure they are collecting enough to cover wholesale power costs without changing their base rates every month.  Paducah Power’s PCA is reviewed and adjusted quarterly, based upon our power costs in the previous months and projected power costs for the upcoming quarter.   It is tied directly to the operating performance of our power supplier, the Prairie State Energy Campus.

In February, the PCA rose sharply to $0.0359 per kilowatt hour because of lower than expected output from the Prairie State Plant due to mechanical issues.  The PCA dropped slightly, May 1st, to $0.0357 and was scheduled to stay at that level until August 1st.  Based upon new power cost information for May and updated projections for the next few months, the PPS Board of Directors voted to move up the recalculation of the PCA.

“We know the high PCA in the past five months has been painful for our residential and business customers, especially during the really cold months,” said PPS General Manager Dave Clark.  “We are doing everything we can to get the Prairie State Plant operating like it’s supposed to, and we believe we’re on the cusp of normal operations there, which has prompted us to take this step.  Hopefully, the PCA will continue to trend downward in the coming months, and this adjustment on July 1st will help customers during the summer months when their usage rises.”

PPS customers can track their usage by using the customer portal on our webpage and our mobile apps available in the Android and Apple markets.

 For more details regarding the purpose of the PCA, please watch this video.


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