As a nonprofit distribution cooperative, CCECA buys wholesale power from other entities to distribute to members as they use it. CCECA doesn’t mark up the cost of this power or make any profit from it. As power costs fluctuate in the market, the PCRF allows CCECA to pass the cost fluctuations to members. This is not a rate change on the price of electricity, but members pay more per kWh with an increased PCRF and less per kWh when it is lowered.
To secure the best power prices, CCECA is a member of a generation and transmission cooperative, East Texas Electric Cooperative, formed to allow distribution cooperatives to plan power supply in larger quantities and take advantage of economies of scale.
Members’ monthly charges as provided under the applicable Schedule shall be increased or decreased based on a Power Cost Recovery Factor (PCRF) (expressed in $ per kWh) computed monthly as follows:
PCRF= (C+E) - B
PCRF = Power Cost Recovery Factor.
C = Total cost from all suppliers for the most recent month.
E = Difference between actual and recovered cost in prior periods.
S = Total estimated kWh sold for the billing period.
B = Base amount of $0.065682.
Everyone is feeling the effect of higher electric bills, whether you are served by CCECA, a municipal utility or live in the deregulated electricity market.
CCECA wants to be open, transparent and proactive so our members know why their energy bills are rising and are aware of potential options that could save them money.
Natural gas prices increased significantly in the latter half of 2021 and have maintained their momentum in early 2022. CCECA paid more for wholesale electricity as the price of natural gas went up.
Because of these fluctuations in pricing, CCECA makes adjustments to your actual energy charge using the PCRF. CCECA projects what the cost of power will be based on historical pricing and then recalculates this each month for accuracy. As wholesale electricity prices increase, CCECA has had to adjust the PCRF to account for the higher costs.
In addition, due to winter storm URI in February 2021, .0075 cents/kWh was added to the PCRF to recover the power cost associated with the storm. The Board of Directors elected to do this in order to recover the cost over a ten year period rather than bill our members for that cost in a one month period.
Can Someone Help Me Understand My Bill?
At CCECA we are always delighted to help our members better understand their bills. If you’d like to review yours or need help calculating it, just give us a call at (903) 683-2248 or email firstname.lastname@example.org.