You've gotten your most recent statement and see a negative PCRF as a credit, but what does that mean?
The Power Cost Recovery Factor (PCRF) is a mechanism that trues up power costs. Put simply, when you see a negative PCRF, it means wholesale electricity prices are lower than budgeted and power cost savings are passed down on to you as a credit on your bill.
Conversely, when prices are higher than budgeted, the PCRF will be a positive number, adding to the base rate. The volatility of the natural gas market is the reason for fluctuating power costs; they are interdependent.
Since February wholesale power costs were lower than budgeted, a negative PCRF of 1 cent/kWh was credited back to members on March billing statements. At Tri-County Electric Cooperative, we are hopeful that our members will see more savings with the negative PCRF in the future.