What is a PCRF and why does it fluctuate each month?
PCRF is simply an acronym for Power Cost Recovery Factor. The PCRF is always on your electric bill and is recalculated every month. The PCRF is NOT included in your base rate. All electric utility bills include a PCRF that reflects the rise and fall in the cost of generating wholesale power – more specifically, the changes in the cost of the raw fuel required to run the generation plant. Currently, the fuel driving these costs is natural gas. Natural gas prices recently hit an all time record high. This high cost for natural gas directly affects the cost of generating electricity and increases customers’ PCRF. This cost has always been passed through to the member.
