East Central Electric Cooperative does not generate electricity.
As a distribution cooperative, we own and maintain the line from the substation to the meter.
Everything from the power plant to the substation is owned by our two generation and transmission cooperatives (G&Ts), KAMO Power and Western Farmers.
More than half of your monthly electric bill is paid to our G&Ts to cover the costs associated with operating and maintaining power plants, purchasing fuel, and the construction and maintenance of high-voltage transmission lines that connect our little part of Oklahoma to the regional power grid.
Some of this cost is included in the Energy Charge line item of your bill, because it is factored into the base electric rate. However, fuel costs fluctuate rapidly and may be very high or very low based on market conditions or the weather.
The Power Cost Adjustment (PCA), reflects the changes in the cost of producing electric power from our wholesale power suppliers which is largely caused by changes in the cost of fuel for generation of electricity.
Part of the power is produced at hydroelectric dams, and power purchased at this source fluctuates widely with the amount of rainfall.
Most electric power, however, is produced by steam generation plants which use coal, natural gas, and oil as fuels to produce the steam that turns the generators that produce the electric power.
The adjustment passes on the difference between the actual cost of wholesale power each month and the base cost used in determining rate schedules. The formula charges all consumers equally for increases and decreases in the cost of producing electric power.
This line item is collected by the co-op, but then passed on to our G&Ts.
