The PCEA Board of Directors have approved rate changes. The purpose of the rate change - which means some rates are increasing, and some are decreasing - is to more accurately recoup the cost of delivering electric service. PCEA has not changed base rates in 11 years, and periodically the co-op should review and adjust rates as needed in order to recover costs more equitably and fairly. PCEA underwent a cost-of-service study last year to evaluate current rates and is adjusting rates accordingly.
Starting in April, the rate changes will go into effect on April bills for March electric use. All rates are being adjusted, which results in an overall average 1% revenue decrease across all rate classes. Here are a few important highlights:
- Some rates and charges will increase, while others will decrease, depending on the rate class.
- Most residential members will not see much of a difference.
- The facility charge for certain rate classes is increasing, but other charges are decreasing. The Distribution Cost Adjustment is decreasing from $0.01 to $0.
- PCEA has not changed base rates in 11 years.
- PCEA’s residential rate is 10¢, which falls below the Iowa average of 12.2¢
Questions? Call us at 641-628-1040 or email us at service@pella-cea.org. We'll be happy to go over your account with you.
| Prior Rate | Prior Average Monthly Bill | New Rate | New Average Monthly Bill | |
|---|---|---|---|---|
| Residential / Single Phase | ||||
| Facility Charge | $27.50 | $35.00 | ||
| Energy Charge per kWh | $0.10100 | $0.10100 | ||
| DCA per kWh | $0.01 | $0 | ||
| $152.31 | $149.84 | |||
| Heat Plus Rate | ||||
| Facility Charge | $5.00 | $5.00 | ||
| Energy Charge per kWh - Summer (June 1 - Sept. 30) | $0.10100 | $22.56 | $0.10100 | $21.16 |
| Energy Charge per kWh - Winter (Oct. 1 - May 31) | $0.07310 | $80.75 | $0.08200 | $79.19 |
| DCA per kWh | $0.01 | $0 | ||
| Small Commercial (<75 kVa) | ||||
| Facility Charge | $50.00 | $75.00 | ||
| Energy Charge per kWh | $0.09179 | $0.09250 | ||
| DCA per kWh | $0.01 | $0 | ||
| $437.16 | $431.13 | |||
| Large Commercial (>75 kVa) | ||||
| Facility Charge | $50.00 | $100.00 | ||
| Demand Charge per kW | $16.25 | $14.00 | ||
| Energy Charge per kWh | $0.04500 | $0.05500 | ||
| DCA per kWh | $0.01 | $0 | ||
| $1,292.90 | $1,307.85 | |||
| Single Phase Pump | ||||
| Facility Charge | $30.00 | $35.00 | ||
| Energy Charge per kWh | $0.10100 | $0.10100 | ||
| DCA per kWh | $0.01 | $0 | ||
| $123.30 | $120.85 | |||
| Three Phase Pump | ||||
| Facility Charge | $57.50 | $75.00 | ||
| Energy Charge per kWh | $0.09620 | $0.09600 | ||
| DCA per kWh | $0.01 | $0 | ||
| $243.33 | $244.92 | |||
| Security Lights | ||||
| Metered Light | $2.25 | $3.00 | ||
| Un-Metered Light | $10.00 | $12.00 |
Frequently Asked Questions
Pella Cooperative Electric has not changed base rates in 11 years, and periodically the cooperative should review and adjust rates as needed in order to recover costs more equitably and fairly. Pella Cooperative Electric underwent a cost-of-service study in 2020 to evaluate current rates and is adjusting rates accordingly.
The cost for PCEA to maintain the electric grid (equipment, poles, wire, tools, etc.), which is collected through the facility charge, continues to increase. Costs such as equipment, line inspections, fleet vehicles, and labor are accounted for in this charge. The co-op is making these rate adjustments to better align with the cost of providing power.
The Energy Cost Adjustment (ECA) on your bill is remaining on the bill. This charge changes monthly to accommodate fluctuations in wholesale power costs.
The Distribution Cost Adjustment (DCA) is adjusted at the Board of Director’s discretion. It is based upon the financial needs of the cooperative and allows PCEA to not have to make a permanent rate change, but recover more or less revenue to meet financial obligations.
We utilize these variables in our billing structure to adjust from time to time, instead of implementing a permanent rate change, when more funds are needed to cover costs.
This charge is based on how much electricity you use. Two categories of expenses are combined into the energy charge: wholesale power cost (what it cost to make the power and get it to the substation) and distribution expense (what it cost to get it from the substation to your meter). The rates vary by rate classification and are charged on a per kilowatt-hour basis.
Material costs have increased. LED lights, which is what PCEA provides, are more expensive but are more reliable and last longer.