The Consumer Cost Adjustment (CCA) is a factor used by the Cooperative to help minimize frequent rate adjustments based on unpredictable weather patterns. When the co-op is experiencing strong sales, typically in the summer and winter, co-op members may see a credit on their bill. When the co-op is experiencing slow sales, the member may pay a small portion on their bill. This balancing mechanism allows the co-op to maintain the revenues needed to cover the costs associated with providing electric service.
During slow sales, the cooperative runs in the red to maintain its power lines. On the flip side, during strong sales, the cooperative collects more revenue than is necessary. This mechanism gives the excess back when it is not needed, but charges just enough when it is needed to operate efficiently.
The board adopted this mechanism in 2006 as a feature that can mitigate the need for frequent changes in the member's base electric rate.