The Power Cost Adjustment (PCA) applied to all energy usage by Paducah Power customers will increase slightly January 1. The PCA, adjusted quarterly to reflect power supply costs, will change from $0.00881 to $0.01052 per kilowatt hour (kWh). The change will result in a $1.71 increase in the monthly bill of the typical residential customer using 1,000 kWh.
This is the first increase in the PCA in nearly five years. Since February 2014, the PCA dropped more than 70%, lowering residential customers’ bills more than 16%. The latest decrease came in October when it went from $0.00997 to $0.00881 per kWh, a drop of $1.16 in the monthly bill of a 1,000 kWh residential customer.
The change in PCA reflects the difference between projected power costs and actual costs.
“Actual power supply costs are somewhat unpredictable because so much is dependent on market prices,” said Doug Handley, PPS Director of Finance, Supply and Power Rates. “Power costs for the months of July through October exceeded our projections by $1.1 million, with more than half of that variance in September.”
PPS General Manager Dave Carroll said, “While the PCA increase is minimal, it’s a reminder that we must stay focused on any opportunities to help lower the cost of power for PPS. One of our primary goals is to find a way to mitigate an increase in debt service we face in the year 2020 by restructuring or refunding some of the bonds issued through the Kentucky Municipal Power Agency.”
PPS adjusts the PCA quarterly, so the next evaluation of the PCA comes in late March.