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Power Cost Adjustment (PCA)

The “PC ADJ” is the Power Cost Adjustment and is computed as part of your electric bill.  Our electric partner (ECG – The Electric Cities of Georgia) looks at all the factors involved in our power cost adjustment on a monthly basis and then advises us what factor to use when we compute our electric bills. 

The power cost adjustment is first composed of those variable items that go into producing electricity, primarily the cost of fuel – mostly coal and natural gas.  The other portion of the power cost adjustment is harder to explain.  The City of Monticello has purchased and reserved a certain amount of power each month with the Municipal Electric Authority of Georgia (MEAG).  In each hour, when we use more than our allotment, MEAG has to purchase additional power and when we use less, MEAG sells our surplus energy and depending on market prices for electricity in each of those hours it can cause Monticello’s power cost adjustment to fluctuate.  However, the power cost adjustment for Monticello has been at a constant .0272 rate for over a year.

Just the same as the price of equity stocks, gasoline or milk can change, so can the price of fuel used to generate electricity and the price of electricity bought from others on the commodity market. 

In brief, the power cost adjustment is roughly based upon and related to the wholesale cost of electricity each month. 


How to calculate your “PC ADJ”

Multiply your electric usage  (in kilowatt hours) by .0272.  The answer will be your PC ADJ.