The Power Cost Adjustment (“PCA”) is a billing mechanism used to collect or return the difference between actual power costs and the power cost assumed in rates pursuant to Rate Schedule PCA.
If the actual cost of power differs significantly from the rate listed in Rate Schedule PCA, then a PCA factor is applied to all customer bills for all kilowatt hours sold. The factor is positive if actual costs are higher than the Rate Schedule PCA cost; or negative if actual costs are lower than the Rate Schedule PCA cost.
Using a PCA allows CMLP to change the amount of money it collects for power costs as wholesale energy costs fluctuate, without having to continually restructure rates. The fluctuation is largely due to the changes in energy costs from the ISO New England market where CMLP purchases its wholesale energy.
Below is a recent history of the PCA factor by month.