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PCRF and Customer Charge

WHAT IS PCRF?

The Power Cost Recovery Factor (PCRF) is the formula used to adjust your electric bill to reflect increases or decreases in the cost of electricity TVEC purchases from its wholesale power supplier for distribution to its members.  Some electric utilities refer to this type charge as fuel costs adjustments.

The base rate of the PCRF includes the average cost of wholesale power purchased by the cooperative. The actual purchased cost each month is variable and may fluctuate from month to month.  To prevent constant over-charge or under-charge, the PCRF formula was developed to make appropriate adjustments on a monthly basis. Some months the PCRF will be positive and some months a negative.  The amount is calculated by multiplying the “KWH Usage” by the PCRF factor.

 

WHAT IS THE CUSTOMER CHARGE?

 The Customer Charge assists in recovering a portion of the fixed costs associated with the delivery of electric service to each meter location.  These costs are incurred by the Cooperative regardless of the amount of energy that is consumed at each meter location.  The Customer Charge component includes billing, accounting, customer service, meter reading, a portion of the distribution wire expense for metering, transformers, general operations maintenance and other expenses based on service to a minimum size customer.