Power Cost Adjustment (PCA) can fluctuate depending on the season, demand, and consumption. 

Wholesale power costs cause fluctuation
When the wholesale cost of power is higher, or lower, than it was when FreeState's last rate study was conducted, those differences show up in the PCA. 

PCA may fluctuate depending on our demand charges. Demand is simply the maximum amount of electrical energy consumed at a given time. Suppliers bill us for both the highest demand set during the month and our coincidental demand. Demand is the highest total kWh's used during a 1-hour period during the month. The coincidental demand is the demand we contributed when our wholesale power provider peaked during the month. When members create more demand by using more electricity during peak times the co-op pays more for the electricity needed by our members. Peaks typically occur between 3 and 6 p.m. on the hottest and coldest days of the month.

The reduction of FreeState’s wholesale costs is the most significant thing to keep our PCA lower. When you voluntarily conserve energy, you reduce the amount of energy and demand we need to buy, especially during the day or on days when temperatures reach 90 and above. 

Why does the temperature matter?  
Weather can have a real impact on your electric bill. Residential accounts see the most fluctuation due to heating and cooling, but the winter months are not necessarily comparable to summer months. Why? Because heating your home in the winter isn’t always electricity-driven because you have options, but almost everyone uses electricity to cool their home. 

If we have a mild summer, with moderate temperatures PCA can remain lower, but if we see temperatures become a moving target PCA can fluctuate quite a bit.

What is this PCA you mention, and why do I have to pay it?
As a distribution cooperative, we don't generate our power. We purchase power to provide you with reliable service. Once the electricity is generated we purchase it from Westar and KEPCo., they have a diverse portfolio of power generation. The type of power we buy can also impact the PCA. For example, power options include renewable power, coal power, nuclear power, and hydropower. 

Keep in mind that a portion of the cost to purchase power for you is included in your kWh rate, but because the market is volatile using PCA helps us make up any differences in those costs when buying wholesale power from Westar or KEPCo. The usage charges on your bill for electricity is exact. We are not-for-profit, so we do not profit from the sale of electricity.

If you don't make a profit, then how do you operate?
Each month you see an electric service charge on your bill. It doesn't change from month to month. This fee paid by members assists the cooperative with operating and material purchasing costs. 

We collect this fee to help pay for wire, poles, other infrastructure, employees, and the cost to run the facilities day-to-day. As a cooperative, we do our best to maintain costs and keep our expenses low to increase our margins. Those margins are returned to our members as capital credits.