It seems that the price of everything around us these days is increasing. Unfortunately, the cost of providing power to Snapping Shoals EMC members has risen dramatically in recent months. As a not-for-profit utility, Snapping Shoals EMC is required to charge cost-based electric rates to recover the actual cost of delivering electricity to serve our members. We know that times have been hard recently. The cost to feed and provide for our families and run our businesses has been greatly impacted. To control our cost to serve you, we operate risk management programs to keep rates as steady as possible. Unfortunately, natural gas markets are at price levels we have not seen in more than 10 years. Coal is rarely available due to shipping constraints, and many of our solar resources do not provide enough energy to meet the needs of our hot summer peaks. All of these factors result in significant increases to the cost of providing electric service to the homes and businesses we serve.
We remain committed to delivering reliable, cost-effective power to our members. The PCA for August will increase about 1.1 cents or $11.74 for every 1,000 kwh purchased. Due to wise financial management in recent years, Snapping Shoals has been able to reduce cost increases to soften the impact to our members. Though we cannot predict the future or control world-wide energy markets, Snapping Shoals EMC will be doing everything in its power to deliver the affordable, reliable power that you expect from your electric cooperative.
What is the PCA? You may have noticed the Power Cost Adjustment (PCA) line item on your monthly bill. The PCA provides a monthly adjustment dependent on any differences in the base cost of wholesale power.
If the kilowatt-hour cost to Snapping Shoals EMC is lower than the base cost of power, the PCA is applied as a credit on your bill. If the kilowatt-hour cost is higher than the base cost of power, the PCA is applied as a charge. Having the PCA benefits our members by covering monthly power cost fluctuations without having to continually restructure electricity rates.
What impacts the PCA? The PCA changes based on the cost of wholesale power, which fluctuates for a variety of reasons. During hot summer months when the demand for electricity is much higher, power may need to be purchased from more expensive sources at market price, which includes additional generation costs. Increased costs for fuels like natural gas also impact the price of wholesale power.
Due to the recent extreme heat and increased demand for electricity, coupled with rising prices for natural gas and other fuels, SSEMC will be raising the PCA from $0.006128 to $0.017871 in August, which is an increase of about 1.1 cents or $11.74 per 1,000 kwh. This is a direct pass-through of the cost associated with reliably serving you the electricity you need.
What is SSEMC doing to help? We know times are tough as the cost of gasoline, groceries and other essential needs are rising. Snapping Shoals EMC is doing everything possible to keep internal costs down, but we can’t control rising fuel costs that are impacting the country.
Snapping Shoals EMC uses a diverse mix of fuel sources for electricity, which helps reduce costs. Our electricity is generated from a mix of coal, natural gas, nuclear, solar and hydro. This balanced fuel mix helps reduce dramatic fluctuations in generation costs.
Snapping Shoals EMC offers several programs and services to help members save on their energy bills, such as energy efficiency rebates and our home energy audit tool. Visit our Energy Advice page for more ways to save. We’re proud to be your energy provider, and we’re always here to help. Contact us at 770-786-3484 or via live chat.
Power Cost Adjustment