LCEC does not generate power but buys it from KEPCo (Kansas Electric Power Cooperative, Inc.). Each month, KEPCo charges LCEC for the variance in the cost to produce and generate electricity above and beyond the base rate. With the Power Cost Adjustment, LCEC is passing along that increase or decrease in the cost of producing electricity that we are charged from KEPCo.
LCEC is charged substantially more for the electricty you consume between 3pm and 8pm (Monday through Friday). By reducing the amount of electricty we consume during those peak hours, you have a direct effect on our load. If the cooperative as a whole improves our load factor, our Power Cost Adjustment would go down.