With one of the coldest winters in recent memory behind us, most people won’t associate that with having a higher electric bill. Most people understand a higher bill in the summer, especially in this region, but may not understand why their winter bill are so expensive. The answer to that question in most cases is simple… electric heat and increased usage.
For more information about electric usage in the winter, please visit Why are my electric bills higher in the winter?
We know you’re curious how the February 2021 winter weather will impact your bill. Due to the record cold temperatures in February, most customers used more energy causing their electric bills to be higher.
North Little Rock Electric Department (NLRED) maintains a balanced and diversified portfolio of energy resources that includes coal, hydropower, natural gas, and methane gas in order to ensure that we are insulated against wild swings on the electric grid. However, NLRED did see higher energy costs due to this unprecedented storm. These costs will be spread out over a 12 month period of time in what’s referred to as the Power Cost Adjustment (PCA). The PCA formula helps minimize the impact to our customers.
What is the Power Cost Adjustment (PCA)?
The PCA is a rate mechanism NLRED uses to recover fluctuating power costs. The PCA enables NLRED to recover these fluctuating power costs as they occur without overcharging or undercharging customers through fixed retail rates. This variable charge may go up and down as the cost of power changes.
How is the PCA calculated?
The PCA is a variable charge for kilowatt hour (kWh). The PCA total will depend on the number of kWh’s the customer uses during each billing period. NLRED reviews and adjusts the PCA calculation on a monthly basis.
Where can I find the current PCA rate?
The PCA is updated monthly and located on our RATES page.
For a more detailed explanation of your bill, please visit Understanding My Bill.
The following are a few options for customers that may be concerned about their ability to pay their electric bills due to extreme temperatures:
- Payment Assistance – The City of North Little Rock authorizes Central Arkansas Development Council (CADC) to administer and provide Home Energy Assistance “financial aid” to qualified low income electric customers.
- Temporary Payment Extension – A Temporary or Medical Payment Extension is an agreement between NLRED and a Customer who requests to maintain electric service at a service location for five (5) business days after the disconnect date.
- Levelized Billing – allows you to pay an average amount per month instead of paying for high usage amounts in one season and lower usage amounts in another season.
- My Account – Monitor usage, pay your bill, receive notifications, and more. iOS and Android app now available.