What is the PCA charge on my MMU bill?
What is the Power Cost Adjustment (PCA)?
The Power Cost Adjustment (PCA) is a rate mechanism that MMU and many other electric utilities use to recover fluctuating purchased power costs. MMU purchases electricity from Kentucky Utilities (KU) at wholesale rates which fluctuate monthly with changes in KU's fuel cost and are adjusted annually. The PCA enables MMU to recover fluctuating wholesale power costs as they occur without overcharging or undercharging customers through fixed retail rates.
How is the PCA calculated?
MMU reviews the PCA calculation on a monthly basis. The PCA calculation works by capturing the difference between the amount that MMU actually pays KU for wholesale power and the amount that MMU collects through its electric rates. The PCA is then increased or decreased to reconcile the amount that MMU under collects or over collects.
Who do I call if I have additional questions about the PCA charges?
If you have any more questions concerning the PCA, please contact Jim Asbury at the Electric Department at 270.824.2130.
