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Power Cost Adjustment

The Power Cost Adjustment (PCA) was formerly called a Fuel Cost Adjustment (FCA). When TVA changed its rate structure April 1, 2011, the FCA became a Power Cost Adjustment (PCA). The PCA does not generate any additional revenue for Gibson EMC. Any money collected through the PCA goes to pay TVA for wholesale power costs. The PCA includes the cost of fuel for generation (coal, nuclear and natural gas), the cost of power purchased on the open market, and the cost of wholesale load diversity. The PCA enables Gibson EMC to set its base rates conservatively and either collect additional revenue or return excess revenue in response to unpredictable variances like extremely mild or volatile weather conditions and higher energy costs on the open market. The PCA can be a credit or a debit, depending upon actual wholesale power costs.

 

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