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 Power Cost Recovery Factor (PCRF) - Explained:                      


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Power Cost Recovery Factor

CCECA is a distribution cooperative and our electric power is purchased through a Generation and Transmission cooperative (G&T).  The power cost fluctuates from month to month and is passed on from the G&T to CCECA then to its members.  When the power cost is greater than the amount recovered through the Energy Charge established in 2007, a power cost recovery factor (PCRF) is added to each member’s bill.  The PCRF is multiplied by the number of kWh’s each member uses that month and allows CCECA to recover the total charge for power cost.


Some factors that cause power cost to fluctuate are fuel costs associated with the source of generation (coal, natural gas, nuclear, water, wind and solar), transmission costs, power plant construction costs, and general operating costs.

 

An example is shown below:

FOR A RESIDENTIAL MEMBER USING 1,000 kWh PER MONTH AND
    A PCRF OF 0.0012345, THE CHARGES ON THE BILL WOULD BE:

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