East Central Energy will add a recurring monthly power cost adjustment (PCA) to customer bills starting with those due in February.
According to a notice from ECE, the board determined in November that an adjustment was necessary to maintain financial stability and continue to provide reliable service.
The PCA is not a fixed number, and will vary depending on individual usage. ECE hasn’t added an adjustment to bills since 2018.
In October, ECE president Justin Jahnz discussed rising costs from power supplier Great River Energy.
"We're going to see some upward pressure going into 2025," Jahnz explained. "This year [2024] has been a really mild year. People have enjoyed lower than normal power bills because of it. And that's a good thing, but it affects the bottom line for Great River Energy when they're not selling as much power as they budgeted to sell."
Jahnz also said that recent Minnesota legislation set a standard for 100 percent carbon-free electricity by 2040.
Great River Energy has had to acquire more renewable resources in response, adding to increased costs for ECE.
According to the coop, PCAs reflect short-term changes in power costs without permanently altering the base rate for electricity.
ECE will go through a cost-of-service study in 2025, and reassess base rates from there.
Photo from East Central Energy website
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