Electric Service Rates

Electric Service Rates

Pierce Pepin Cooperative Services is committed to providing our members with reliable, affordable energy.  Factors that affect electric rates include:

• Cost of fuel (coal, natural gas, etc.) to create the electricity
• Availability - Dairyland is a member of MISO (Midwest Independent Transmission System Operator) which is a clearing house for the sale and purchase of electricity.  See map of MISO region.
• Physical plant (equipment such as wire, transformers, etc.)
• Weather - Please see MISO regional map.  As an example, weather in Canada can affect the energy supply in our area.

Current rate schedule. 

Terms
There are many terms we use to discuss energy production, distribution and rates.  Some of the most common terms are listed below.

Facility Charge
The monthly facility charge represents a cooperative member’s equal share of our fixed costs, or those costs to purchase, build, inspect and maintain power lines, substations, equipment and buildings – the infrastructure to provide you with reliable electricity, no matter how much energy, or kilowatt-hours, you actually use. 

This charge may fluctuate among electric utilities. The reason is density, or the number of members or customers served by the utility that can share in paying these fixed costs.  PPCS has just 5.7 members per mile of line while an investor-owned utility (IOU) has an average of 34, and municipal utilities serve about 48 customers.  This means that PPCS has far fewer members to help pay for these fixed costs.

*National average

Energy Charge
The amount of electricity used as measured in kilowatt-hours (kWh), multiplied by the current rate. 

Off-Peak Energy Charge
The amount of electricity used as measured in kWh, multiplied by the current off-peak rate. Certain heating and water heating systems under load management may qualify for a lower rate for electricity used during periods when the demand is less.

Power Cost Adjustment (PCA)
The PCA represents costs to generate electricity that are passed on to PPCS by Dairyland Power Cooperative, our power supplier, that are beyond what was projected to be collected through the normal rate structure.

Each month PPCS compares the amount and cost of power purchased and sold to our annual budget.  Any variations in the actual versus projected power costs go into a formula that sets the PCA charge.  As a not-for-profit electric cooperative, all members share in the increased costs of electric energy, even when those costs are outside the control of the cooperative.  The goal of the PCA is to help collect the full cost of wholesale power purchased from Dairyland Power for our members.

What does one dollar of PPCS revenue go to pay for?  The chart below illustrates this.