Starting in February, you’ll notice a new charge on your monthly electric bill — a line item titled: PSCR.
Power Supply Cost Recovery, or PSCR, is fuel-cost adjustment factor used by utilities to reconcile for fluctuations in purchased power costs. In essence, this cost helps Cloverland pay for wholesale power and fuel. Adjusting this factor when needed allows the co-op to stay on budget since fuel costs fluctuate.
Power Supply Cost Recovery (PSCR)
What is PSCR?
Starting in February, you’ll notice a new charge on your monthly electric bill — a line item titled: PSCR.
Power Supply Cost Recovery, or PSCR, is fuel-cost adjustment factor used by utilities to reconcile for fluctuations in purchased power costs. In essence, this cost helps Cloverland pay for wholesale power and fuel. Adjusting this factor when needed allows the co-op to stay on budget since fuel costs fluctuate.
How much will my bill go up?
PSCR increased to $0.006 per kilowatt-hour, effective January 1, 2022. For an average residential member using 750 kWh per month, the increase will be equivalent to approximately $4.50 per month.
Does Cloverland profit from PSCR? What is the reason for the increase?
Cloverland is a not-for-profit electric utility. The PSCR factor is a direct pass-through of power supply costs that allows the co-op to manage its budget. 56 cents on every dollar Cloverland spends goes directly toward power supply. That leaves just 44 cents to pay for materials, payroll and other costs to maintain our power lines and infrastructure. PSCR keeps our co-op from further dipping into the small portion used to meet our operating needs. Think of it like the cost of your car – monthly payments stay the same (kWh rates), but gasoline prices fluctuate (PSCR), along with other costs to maintain the car.
Why did PSCR change?
Over the past year (2021), transmission and fuel costs have increased significantly. With rising costs, Cloverland needs to be able to pay for the delivery of the electricity to all co-op members – residential, commercial and industrial. This PSCR adjustment ensures the co-op can cover increased power supply costs for all members.
How long will the PSCR be at $0.006%?
Through careful management, Cloverland has been able to keep PSCR at zero for three years (2019-2021). However, due to increasing costs, we must increase PSCR to cover our expenses. You can expect to see the PSCR adjustment on your billing statements for the foreseeable future, however it might not always reflect a charge. At times it may be $0 or even a credit. The number you see there will adjust based on the need to fund fluctuating power supply costs. With more intermittent renewable energy sources such as wind and solar on the grid, there is more exposure to price hikes in back-up sources such as natural gas and diesel. This problem is not unique for Cloverland but rather a trend that is impacting our entire regional power grid. Cloverland continues to search for ways to mitigate these increases.
What is PSCR?
Starting in February, you’ll notice a new charge on your monthly electric bill — a line item titled: PSCR.
Power Supply Cost Recovery, or PSCR, is fuel-cost adjustment factor used by utilities to reconcile for fluctuations in purchased power costs. In essence, this cost helps Cloverland pay for wholesale power and fuel. Adjusting this factor when needed allows the co-op to stay on budget since fuel costs fluctuate.
Starting in February, you’ll notice a new charge on your monthly electric bill — a line item titled: PSCR.
Power Supply Cost Recovery, or PSCR, is fuel-cost adjustment factor used by utilities to reconcile for fluctuations in purchased power costs. In essence, this cost helps Cloverland pay for wholesale power and fuel. Adjusting this factor when needed allows the co-op to stay on budget since fuel costs fluctuate.
How much will my bill go up?
PSCR increased to $0.006 per kilowatt-hour, effective January 1, 2022. For an average residential member using 750 kWh per month, the increase will be equivalent to approximately $4.50 per month.
PSCR increased to $0.006 per kilowatt-hour, effective January 1, 2022. For an average residential member using 750 kWh per month, the increase will be equivalent to approximately $4.50 per month.
Does Cloverland profit from PSCR? What is the reason for the increase?
Cloverland is a not-for-profit electric utility. The PSCR factor is a direct pass-through of power supply costs that allows the co-op to manage its budget. 56 cents on every dollar Cloverland spends goes directly toward power supply. That leaves just 44 cents to pay for materials, payroll and other costs to maintain our power lines and infrastructure. PSCR keeps our co-op from further dipping into the small portion used to meet our operating needs. Think of it like the cost of your car – monthly payments stay the same (kWh rates), but gasoline prices fluctuate (PSCR), along with other costs to maintain the car.
Cloverland is a not-for-profit electric utility. The PSCR factor is a direct pass-through of power supply costs that allows the co-op to manage its budget. 56 cents on every dollar Cloverland spends goes directly toward power supply. That leaves just 44 cents to pay for materials, payroll and other costs to maintain our power lines and infrastructure. PSCR keeps our co-op from further dipping into the small portion used to meet our operating needs. Think of it like the cost of your car – monthly payments stay the same (kWh rates), but gasoline prices fluctuate (PSCR), along with other costs to maintain the car.
Why did PSCR change?
Over the past year (2021), transmission and fuel costs have increased significantly. With rising costs, Cloverland needs to be able to pay for the delivery of the electricity to all co-op members – residential, commercial and industrial. This PSCR adjustment ensures the co-op can cover increased power supply costs for all members.
Over the past year (2021), transmission and fuel costs have increased significantly. With rising costs, Cloverland needs to be able to pay for the delivery of the electricity to all co-op members – residential, commercial and industrial. This PSCR adjustment ensures the co-op can cover increased power supply costs for all members.
How long will the PSCR be at $0.006%?
Through careful management, Cloverland has been able to keep PSCR at zero for three years (2019-2021). However, due to increasing costs, we must increase PSCR to cover our expenses. You can expect to see the PSCR adjustment on your billing statements for the foreseeable future, however it might not always reflect a charge. At times it may be $0 or even a credit. The number you see there will adjust based on the need to fund fluctuating power supply costs. With more intermittent renewable energy sources such as wind and solar on the grid, there is more exposure to price hikes in back-up sources such as natural gas and diesel. This problem is not unique for Cloverland but rather a trend that is impacting our entire regional power grid. Cloverland continues to search for ways to mitigate these increases.
Through careful management, Cloverland has been able to keep PSCR at zero for three years (2019-2021). However, due to increasing costs, we must increase PSCR to cover our expenses. You can expect to see the PSCR adjustment on your billing statements for the foreseeable future, however it might not always reflect a charge. At times it may be $0 or even a credit. The number you see there will adjust based on the need to fund fluctuating power supply costs. With more intermittent renewable energy sources such as wind and solar on the grid, there is more exposure to price hikes in back-up sources such as natural gas and diesel. This problem is not unique for Cloverland but rather a trend that is impacting our entire regional power grid. Cloverland continues to search for ways to mitigate these increases.