Dixie Electric is a not-for-profit electric utility. We’re committed to delivering reliable, cost-effective power to our members.
Dixie Electric purchases electricity each month from our power supplier, Cooperative Energy, at a wholesale cost to meet the needs of our members. The cost of wholesale power is a significant expense in providing electric service to the homes and businesses we locally serve.
You may have noticed the Power Cost Adjustment (PCA) line item on your monthly bill. The PCA provides a monthly adjustment dependent on any differences in the base cost of wholesale power.
If the kilowatt-hour cost to Dixie Electric is lower than the base cost of power, the PCA is applied as a credit on your bill. If the kilowatt-hour cost is higher than the base cost of power, the PCA is applied as a charge. Having the PCA benefits members by covering monthly power cost fluctuations without having to restructure electricity rates continually.
The PCA changes based on the cost of wholesale power, which fluctuates for a variety of reasons. During hot summer months, when the demand for electricity is much higher, power may need to be purchased from more expensive sources at market price, which includes additional generation costs. Increased costs for fuels like natural gas also impact the price of wholesale power.
We know times are tough as the cost of gasoline, groceries, and other essential needs are rising. Dixie Electric is doing everything possible to keep internal costs down, but we can’t control rising fuel costs that are impacting the country.
Dixie Electric uses a diverse mix of fuel sources for electricity, which helps reduce costs. Last year, Cooperative Energy’s electricity was generated from coal (12%), natural gas (74%), nuclear (10%), solar (1%), and hydro (3%). This balanced fuel mix helps reduce dramatic fluctuations in generation costs.
We’re here to help. Contact us if you have questions about your bill or ways to save energy. (601) 425-2535