FAQs about Fuel Charge or Power Cost Adjustment

City of Liberty

FAQ’s about fuel charge or Power Cost Adjustment

What is a Power Cost Adjustment (Fuel Charge)?

The Power Cost Adjustment (PCA) is a mechanism that permits utilities to regularly adjust the price of electricity to reflect fluctuations in the cost of fuel, or purchased power used to supply electricity.  The cost to make electricity is affected by the price of coal and fuel.  The City of Liberty has an established rate per kilowatt-hour to provide electricity to its customers, and this rate does not fluctuate.  The PCA is a fuel adjustment charge caused by an increased or decreased cost in coal or fuel.  It is shown on the customer’s bill as a surcharge to the price per kilowatt-hour.  The City of Liberty does not make a profit from the PCA (fuel charge) but passes it on to the customer at the actual price charged. 


Why does the Power Cost Adjustment fluctuate?

The PCA changes monthly to reflect the fuel cost incurred in the previous month.  It depends on the cost of power we receive from Sam Rayburn Municipal Power Agency, and that charge is dependent on the power market from month to month.


Does the City of Liberty earn a profit on the Power Cost Adjustment?

No.  The PCA serves strictly as a mechanism for reflecting costs of fuel and purchased power on a dollar for dollar basis. 


How do you know how much each customer has to pay?

The PCA formula is taken times the number of Kwh you use for the month.  This way everyone pays their fair share.