At Big Country Electric Cooperative, we know energy costs can be unpredictable. Factors like fuel prices, weather conditions and market demand can cause fluctuations that impact the cost of power. While we can’t control the price of fuel, we can control how we manage and forecast these costs to minimize the impact on our members.
One of the key ways we do this is through strategic power cost adjustment management. The PCA is a mechanism used to adjust for changes in wholesale power costs, ensuring members pay an amount that accurately reflects current expenses. However, without careful oversight, these adjustments could result in sharp swings in monthly bills. That’s where our accounting team’s proactive approach comes in.
Proactive, Not Reactive
Rather than waiting for market changes to dictate sudden rate shifts, BCEC takes a long-term, strategic approach to managing power costs.
Our accounting team works diligently to forecast future energy costs, analyzing trends and working closely with our power supplier, Golden Spread Electric Cooperative, to anticipate changes before they happen. This allows us to smooth out fluctuations and avoid sudden, drastic increases or decreases in the PCA.
Smoothing the Swings
Some months, members may notice a PCA credit on their bills. This means power costs were lower than projected, and we’re passing those savings directly back to you. Other times, slight increases may be necessary to cover higher costs. By adjusting gradually and strategically, we ensure that no single month brings an unexpected financial burden to our members.
Financial Health
As a cooperative, our goal isn’t profit. It’s to provide reliable electricity at the most stable and affordable rates possible. Our accounting team plays a vital role in balancing cooperative financial health with the best interests of our members. Their work ensures your co-op remains financially strong while protecting members from the volatility of energy markets.
While no one can predict the future with absolute certainty, financial planning helps reduce risk and uncertainty. By using careful forecasting and planning, we strive to keep rates as steady as possible, protecting members from the extreme highs and lows of the energy market.
We’re committed to making decisions that serve our members’ best interests. While fuel costs may rise and fall, our approach remains the same: strategic, thoughtful and focused on minimizing the impact on you.
We look ahead, so you can focus on what truly matters: home, family and the things that power your life.
