As a not-for-profit electric cooperative, Tipmont REMC provides electricity to you at cost; meaning Tipmont does not profit from selling you electricity. That electricity that comes to your home or business is purchased from Wabash Valley Power.
The Power Cost Adjustment (PCA) is calculated each month and allows Tipmont's monthly rates to stay consistent rather than changing every time the generation cost of energy fluctuates.
Some months, the cost of wholesale power is actually below the base rate. The difference appears on your electric bill as a credit.
The Power Cost Adjustment (PCA) is an adjustment made to your electric bill to reflect fluctuations in the true cost of power purchased from Tipmont’s provider, . The fluctuation is largely caused by changes in the cost of fuel for generation.
It appears as a separate line item on each member's bill each month. This adjustment is applicable to and becomes a part of all of the Tipmont REMC’s retail rates schedules and is applicable to all sales.
Tipmont receives no benefit or profit from the PCA.
Computing the Power Cost Adjustment
The Power Cost Adjustment is calculated each month by multiplying the amount charged or credited by the number of kilowatt hours used. For example, if the amount charged is .02420, and 1000 kWh was used during the billing period, the Power Cost Adjustment would be a charge of $24.20.
The monthly bill computed under the appropriate rate schedule will be increased or decreased by an amount as determined below.