What is the Cost Adjustment printed on my bill?

The Power Cost Adjustment Clause (PCAC) is applied to your electric usage and is authorized by the Public Service Commission for municipal utilities. The PCAC is an automatic adjustment clause that allows a utility to adjust customer’s monthly bills either upward (additional charge) or downward (credit) that is either above or below the average cost authorized by the Public Service Commission and reflected in the utility’s base rates. The three main reasons that an adjustment is necessary: 1) increased cost of natural gas for electric generation; 2) increased costs to purchase power from others; 3) increased out-of-state transmission (delivery) charges.