The Arcadia Electric Utility is a municipal owned utility, because of this you see a line on your monthly bill for PCAC which stands for Power Cost Adjustment Clause. We use the PCAC to pass through to you the actual costs for purchasing your wholesale power. The PCAC can increase or decrease monthly depending on variations in weather, customer usage, fuel costs and many other factors.

The PCAC helps to keep rates as low as possible by ensuring that the utility collects no more or no less than its actual cost for your wholesale power, which typically represents approximately 75 percent of the local utility’s annual operating expense. The PCAC provides financial stability to the nonprofit utility by making sure it collects revenue sufficient to cover its largest operating expense. Without the PCAC, local rates would likely need to increase.