From the Top

Every month, when you receive your electric bill, there's a line item labeled "cost adjustment." It plays a vital role in how we keep your power reliable and reasonably priced.

The largest portion of this adjustment is called the Power Cost Adjustment, or PCA. The PCA isn't a fee we create; it's a "pass-through." When our wholesale power provider, Western Farmers Electric Cooperative, experiences changes in the cost of generating electricity, those changes are passed on to us and, ultimately, to you. We don't profit from the PCA; it's simply a way to reflect current market conditions at your power's cost.

So what causes those costs to change? Supply and demand heavily influence the energy market. During periods of high demand, the price of fuel used to generate electricity can spike. WFEC uses various power sources, and when demand is high, they may need to turn to more expensive, less efficient plants.

As a result, the PCA on your bill may rise or fall from month to month. It's not a sign of mismanagement — it's how the power market works. Fortunately, WFEC has managed these fluctuations well. While natural gas prices are the primary driver of PCA changes, they've remained relatively stable in recent years.

This adjustment accounts for about one to two cents per kilowatt-hour on your bill. While that may not seem significant, it adds up over time and reflects the reality of operating within a dynamic energy market.

We want to be upfront about how charges are calculated because you deserve to understand what you're paying for. The PCA allows us to avoid larger rate hikes while ensuring the cost of electricity reflects current fuel prices. Visit our YouTube channel (youtube.com/oklaelec) to learn more with helpful videos about the components of your electric bill."

As always, our team is here to help with any questions. We appreciate your trust in us as your local electric cooperative.