What does PCRF stand for?
The electric utility industry possesses its own set of acronyms, PCRF is one of those. PCRF is an acronym for Power Cost Recovery Factor and it is something HILCO Electric Cooperative deals with on a monthly basis. The PCRF is the rate component, on all electric bills, that is a direct reflection of the fluctuating cost of fuel required to run an electric generation plant. Since HILCO is a distribution cooperative, we purchase our wholesale power from a generation company, Brazos Electric Power Cooperative. Brazos generates approximately 84% of its electricity and purchases the remaining amount needed to meet its demand. When fuel prices rise, it costs Brazos more to produce electricity and those costs are passed through to HILCO and its members by an increase in the PCRF. So while HILCO’s rate for the price of electricity has not changed, members will pay more with an increased PCRF. One way to think about PCRF is to compare it to the cost of gasoline for your car. Even though your mo
