GEORGETOWN, Texas (KXAN) — The Cty of Georgetown announced Tuesday it will increase the power cost adjustment — or PCA — on customers’ electric bills starting February 1.
The PCA allows the city to recover costs associated with purchasing energy. As a result of the change, customers will see an increase of $0.0135 per kilowatt hour, resulting in a new PCA of $0.0175 per kilowatt hour through September.
The average customer uses 949 kilowatt hours per month and will experience a $12.82 increase on their monthly bill. The changes come after several years of depressed energy prices due to unreliable energy usage forecasts. Previous years presented low numbers as oddities due to various factors — like weather — but the 2018 figures indicated the decline in the market overall.
The city previously tried making changes to address the issue, including adjusting how it financed electric infrastructure projects. The city is also considering a variety of other ways to remedy the situation.
Additionally, Georgetown executed its current energy contracts based on a 20-year forecast of continued growth and likewise, contracted more energy than it currently needs. This is standard practice. Georgetown, however, continues to be one of the fastest growing cities in Texas and is attempting to find ways to serve demand from consumers and businesses.
The biggest hurdle in this current challenge depends on the large amount of energy the city must sell on the market that is not currently consumed in Georgetown. The PCA is only one tool to ensure the financial stability of the electric fund as the city works to address its current financial arrangements.