Power Cost Adjustment

At Nishnabotna Valley REC, the Board of Directors and staff work hard to keep your electric rates affordable. To ensure that our member-owners are only paying for the actual cost of the electricity you consume, we implement a Power Cost Adjustment (PCA) on your monthly bills. This adjustment helps to keep our rates fair and reflective of the current market costs of power generation, transmission, and distribution. The PCA ensures that members pay a price that aligns with real-time energy costs without us having to constantly change base rates, which remain stable over time.

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The Power Cost Adjustment is calculated each month based on the difference between the energy supply costs we incur and the rates that are set for our members. Nishnabotna Valley Rural Electric Cooperative purchases electricity from Basin Electric Power Cooperative in Bismarck, ND, and from Northwest Iowa Power Cooperative in LeMars, IA. The cost of that power can vary due to factors such as market demand and weather conditions. When these costs rise or fall, the PCA allows us to adjust the rate you pay accordingly. This ensures your Cooperative maintains financial stability while continuing to provide reliable service to you, our valued member-owners.

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To determine the PCA, we first evaluate the current cost of power and compare it to our existing rates. If there is a discrepancy—whether an increase or decrease—the difference is applied as a charge or credit to your monthly bill. The adjustment is expressed in cents per kilowatt-hour (kWh) and is calculated in a way that reflects the precise change in cost for your consumption during that billing cycle. While this adjustment may fluctuate month-to-month, it helps us keep overall electricity rates competitive and ensures you are only paying for the actual cost of the energy you use.