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AEC OFFICE: 951-763-4333

TO REPORT AN OUTAGE CALL: 951-763-4333

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Power Cost Adjustment

Understanding the Power Cost Adjustment

What is the “Power Cost Adjustment” on my bill?

Anza Electric Cooperative, Inc. (AEC) has a long term “Power Purchase Agreement” with Arizona Electric Power Cooperative, Inc. (AEPCO).  The price per kilowatt-hour that Anza Electric pays for the electricity that we purchase under this contract is subject to variable market forces, most notably the price of coal and natural gas, which is burned to provide heat for the generator turbines, and the price of railroad transportation to bring the coal to the power plant.  The Power Cost Adjustment is a mechanism that allows for the “pass-through” of these variable costs, without resorting to a permanent rate increase.

Why does the Power Cost Adjustment vary from month to month?

AEC’s electric meter is read on a monthly basis, just like our members.  AEC receives a power bill on a monthly basis, just like our members do.  The Power Cost Adjustment is calculated by subtracting the 2009 base wholesale cost of power rate of  $.0817 from the current cost per kilowatt-hour sold.  This amount is then multiplied by your monthly usage in kilowatt-hours to determine your total Power Cost Adjustment cost for the current month. 

Will the Power Cost Adjustment continue to increase?

This is impossible to answer.  Since the price of fuel, like all commodities fluctuates up and down over time, the Power Cost Adjustment will continue to be highly variable. As a non-profit cooperative, AEC is committed to providing its membership with the lowest cost, most reliable electric service available.

What can I do to reduce my costs?

AEC provides free in-home energy audits to all its members.  We routinely help our membership save money by finding those areas in their homes where they can conserve and save money.  There are many resources available to our members regarding energy conservation and efficiency.  Remember, the lowest cost kilowatt-hour is the one that is never used!

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©2023 Anza Electric Cooperative, Inc. All Rights Reserved.

  • About Us
    • Electrical Service Territory Map
    • About Touchstone Energy
    • Articles of Incorporation
    • Bylaws
    • Call Before You Dig
    • Cooperative Principles
    • Contact Us/Days We're Closed
    • History
    • Mission Statement
    • Power Content Label
    • Service Territory/Board Districts
    • Non-Discrimination Statement
    • What is an Electric Cooperative?
    • Why Does My Power Go Out?
    • 501(c)12 Information
    • Employment
  • Our Board
    • Board Minutes
  • Member Services
    • Start/Stop Service
    • HEAP Assistance
    • Assistance - Utility
    • Assistance - Various Types
    • Kill-A-Watt Program
    • My Account
    • Power Cost Adjustment
    • Rates
    • Request Forms
    • Co-op Connections
    • Is there Life Support Equipment in your home?
  • Energy Solutions
    • Energy Audit
    • Energy Savings Guide
    • Renewables
      • Net Metered Renewable Energy
      • Renewable Tax Credits
      • Efficiency Tax Credits
    • SunAnza
    • Together We Save
    • Net Metering/Distributed Generation Rate
  • Community
    • Co-op Connections Savings Program
    • Co-op Healthy Savings
    • Operation Round Up
    • Prescription Discount
    • Washington Youth Tour
    • News & Events
    • Safety
  • Capital Credits
    • What are Capital Credits?
    • Capital Credit Estates
    • Unclaimed Capital Credits
  • FAQ
  • Resources
    • Bill Inserts
    • Currents Magazine
    • Electrical Safety
    • Links
  • ConnectAnza
    • What is ConnectAnza
    • ConnectAnza Products and Pricing
    • Sign up for Internet Service
    • CTF Information
    • ConnectAnza Policies
    • Need more battery back-up?
    • Internet and Phone Service Outage Map
    • ConnectAnza Contract
  • Electrify Anza
    • Electrify Anza