Update: December PCRF Will Go Down to $0.01 per kWh
With wholesale energy prices declining, it has been announced that the December Power Cost Recovery Fee on December bills will be $0.01 (once cent) per kilowatt-hour instead of the planned $0.025.
Below is the original PCRF announcement from June 29, 2022.
The primary driver for wholesale electricity prices in Texas is the natural gas market. There are many factors affecting gas prices, from global conflicts and politics to demand and export capacity. As of May, natural gas prices were up 180% and the statewide average for electricity was up 43% year over year.
Amid this historic inflation and economic turmoil, we have done our best to keep costs down and minimize the impact of rising energy markets on TVEC members’ monthly electricity bills.
Unfortunately, wholesale electricity costs have reached a point at which we are not able to absorb the increases and we must pass on the additional costs to members. Members will see this as an increase in the Power Cost Recovery Factor on upcoming bills.
We currently anticipate an additional $0.01 (one cent) per kWh increase for the months of July, August and September, and a $0.025 (two-and-a-half cents) per kWh increase for the months of October, November and December.
For a typical summer high-usage billing cycle of 1,000 kWh bill and the $20 monthly member fee, this will result in a total effective rate of $0.1348 per kWh for July-September. This compares favorably with statewide electric rate averages, which have risen to more than $0.1501 per kWh in the first quarter of 2022.
With this plan, the highest projected PCRF bill additions will be added in lower-usage months to reduce the potential impact on overall bill amounts.
The energy market is very volatile right now, and we will be monitoring and adjusting as market conditions change.
For more information about the PCRF adjustment on your bill, please refer to the description of the charge on the back of your bill.
During this time, any efforts to reduce energy consumption will be even more beneficial, both on your bill and to the co-op. Here are some links to energy efficiency information and helpful tips.
Touchstone Energy “Energy Adventure” home evaluation game
Texas Co-op Power Energy Efficiency Article Archive