Understanding the upcoming 3.5% Power Cost Adjustment

The approximate 3.5% Power Cost Adjustment (PCA) is set to take effect on January 1, 2026 (reflected on February bills). This adjustment applies to all rate classes based on kWh usage and will appear as a line item on monthly bills — see example at right.

As mentioned in last month’s Newsboy, the PCA is necessary to cover fluctuating wholesale power costs from our energy provider, Tri-State Generation & Transmission.

Key details:
• The PCA line item has been added under Current Service Detail (showing a zero charge on October–January bills).

• The PCA charge will first appear on February 2026 bills, reflecting January’s usage.

• For the average residential member, estimated monthly bill adjustments are as follows:
    -January: Based on average use of 957 kWh, bills will increase by approximately $9.67.
    -April: Based on average use of 612 kWh, bills will increase by approximately $5.87
    -August: Based on average use of 491 kWh, bills will increase by approximately $4.33.
    -Across all 12 months, the annual average adjustment is estimated at a $6.24 increase per month for a household using an average of 651 kWh.

• As a not-for-profit cooperative, Tri-State remains focused on providing reliable and affordable power for members, including SLVREC.

• Tri-State is making major investments in generation and transmission to meet reliability standards and environmental requirements while serving member growth at the lowest possible cost.

• Broader economic and industry factors — such as tariffs, clean energy tax credit changes, and regulatory uncertainty — have amplified these rate impacts.

• Tri-State continues to work to mitigate wholesale rate increases by reducing expenses and optimizing member assets whenever possible.