What is a Power Cost Adjustment charge?
The power cost adjustment is a charge passed through from the generation company to cover the variable cost of fuel and purchased power. Because fuel prices may vary widely from month to month and additional power must be purchased from time to time, the bill is adjusted to cover the complete wholesale power cost. The fact is that all electric utilities have a power cost adjustment for fuel each month, but Yazoo Valley shows it as a separate item on the bill. We want you to know exactly how much of your bill is the cost of fuel at the generating plant. Our fuels are coal-60%, natural gas-14%, and nuclear-21%, with the remainder of power being hydro-5%. There’s one good thing about the power cost adjustment. It can also go down! The power cost adjustment reflects the exact cost for fuel to make the kWh’s that you used. If the price Yazoo Valley pays for fuel goes down, then the cost per kWh goes down too. If we had a fixed power cost adjustment, then sometimes you would pay too much!
