PCA: Product Cost Adjustment
Stanton County P PD has received a PCA credit for the past 4 years. The Board of Directors decided to return the PCA credit to the customers as a direct pass through f or qualifying services (if the service has metered energy and is allowed by electric service contracts). Through 2022, SCPPD has returned over $3.5 million in PCA credits to our customers. IF you are interested in your individual savings, look at your monthly bill for the line item label ed PCA showing a credit.
Public Power customers across Nebraska have experienced several consecutive years of stable rates. The last rate increase for Stanton County Public Power District was in 2014. In fact, the Board of Directors approved a rate decrease over several rate classes totaling a 2% overall revenue reduction effective 2022. That reduction was above and beyond the Production Cost Adjustment (PCA) credit that has been passed through since 2020.
The PCA dates back many years and originated from a fuel cost adjustment in the beginning. The cost of coal and the transportation to get it to the generation facility were vulnerable and subject to drastic price hikes. Rather than building in a margin to cover these unforeseen hikes, generators use a PCA to pass these costs onto the consumer. While this method leaves the door open for consumer cost to go up, it keep the rates lower during the “normal” situations.
The PCA is used in conjunction with a Rate Stabilization Account (RSA). This account is used to hold excess margins used to stabilize rates in volatile times. Once the excess margin in the RSA exceeds the amount allowed by the contract, then our generator will issue a PCA credit. This results in a refund of excess margin through lower power costs.
All of the major generators in Nebraska are members of the Southwest Power Pool (SPP). SPP is charged by the Federal Government to ensure reliable supplies of power, adequate transmission infrastructure and competitive wholesale rates are available to its members through a wholesale energy market. This market has provided benefit to Nebraska by selling excess energy to others in the market in need. The excess energy has been made possible by a generation fleet that produces low cost and reliable energy when other generators in the power pool are not able to meet the demand. The surplus of energy is turned into a surplus of margin. In Nebraska, through the Public Power model, this means the customer wins!
Chad Waldow – CEO
Look Up & Look Out
Planting season is here! As you begin to move through the fields and on the roads with large equipment, please be sure to always use a spotter and watch out for overhead power lines.
If you ever do come into contact with a power line, DO NOT get out of the vehicle. Call 911 and/or the SCPPD office for assistance. Always assume the line is live and dangerous until district personnel assure you that it is safe.
Contracts have been mailed out for the 2023 season
All irrigation customers should be receiving their irrigation packets. This includes the 2023 interruptible irrigation service agreement, along with a newsletter and current irrigation rate schedules. Please take time to review the information and choose your load management for the season. All contracts are due by April 1, 2023.
Notification Test Day: April 25th between 9:00 a.m. and 11:00 a.m.
Please prepare to receive a test notification message similar to the image above. Help us improve our notification system by responding to the messages. Please notify the office if you do not receive the message or there are any problems.
Efficiency: Heat Pump
Upgrading your heating/cooling system to a high efficiency heat pump can save energy AND money! Check with your HVAC installer to find out which system will work best for your home and don’t forget to ask about the EnergyWise rebate!