What causes a PCA?

Several factors can necessitate a power cost adjustment. Here are three of the main factors:

  1. Commodity costs
    • Natural gas is used not only to heat homes directly but also to fuel power plants. When Xcel pays more for these commodity prices, they pass these increased costs on to us. As a not-for-profit company, these increased costs are passed on to our members through a PCA. And we aren't just seeing this with natural gas - any fuel source, whether oil, coal, or natural gas, has risen in commodity price due to more considerable consumer demand.
  2. Weather
    • When we see extreme weather patterns, the demand for fuel increases. As demand increases, the commodity cost will follow.
  3. Other causes
    • We saw that weather wasn't the only cause of rising power costs. Over the past three years, we saw the war in Ukraine, the pandemic, government regulation, and many other factors affect natural gas and fuel prices. We have seen record highs in natural gas prices over the past few years, and we expect to see this trend continue.