The PCAC (Power Cost Adjustment Clause) is the difference (greater or less than) between the current power cost and the base power cost. The base power cost is our power suppliers’ electric rate, which is what our rates are based on.
The current power cost is the cost of producing power for a given billing period from any and all generators currently supplying power to our power supplier.
The PCAC fluctuates due to costs associated with producing power at the generators for consumption. Examples of what would have an effect on the PCAC are increased costs in natural gas or coal.