Understanding Your Bluebonnet Electric Bill: The Power Cost Recovery Factor (PCRF)
Bluebonnet Electric Cooperative delivers power to its members by purchasing electricity wholesale and then distributing it. The majority of this power comes from the Lower Colorado River Authority (LCRA). A portion of your bill, called the Power Cost recovery Factor (PCRF), directly reflects the actual cost of generating that electricity.
What does the PCRF do?
The PCRF fluctuates to ensure Bluebonnet recovers the costs associated with power generation. When the price of generating electricity changes – whether it increases or decreases – the PCRF is adjusted accordingly. This means Bluebonnet can accurately pass along the cost of power to its members.
How does it impact my bill?
Bluebonnet’s overall electric rate has two parts: the cost of purchasing power and the cost of delivering that power to you. The delivery portion of the rate remains stable for extended periods. The PCRF is the variable component, responding to changes in wholesale power costs.Instead of your overall rate changing, only the PCRF adjusts to reflect thes fluctuations.
Think of it like your car: your monthly car payment is fixed, but the cost of fuel varies. Similarly, your base electric rate stays consistent, while the PCRF adjusts with fuel costs. A key benefit is that when fuel prices decrease, the PCRF also decreases, meaning savings for Bluebonnet members.
How ofen does the PCRF change?
The PCRF is adjusted as needed to reflect conditions in the wholesale power market. These conditions are influenced by factors like the price of natural gas – the primary fuel source for electricity generation in Texas. Bluebonnet continuously monitors these market conditions (daily, weekly, monthly, and annually) and adjusts the PCRF to accurately reflect the cost of providing power.
