The Consumer Cost Adjustment (CCA) is a factor used by the Cooperative to help minimize frequent rate changes caused by unpredictable weather patterns. Because weather greatly affects how much electricity members use, the CCA helps balance out periods of extreme high or low energy use so the cooperative can maintain the revenue needed to provide reliable electric service.
During times when overall energy use is lower than expected, the cooperative may collect less revenue than required to maintain and operate the system. The CCA helps correct this difference by adding a small charge when needed. This balancing mechanism ensures the cooperative recovers only the amount necessary to operate efficiently without having to adjust base rates multiple times throughout the year.
The board adopted this mechanism in 2006 as a way to stabilize rates and reduce the need for frequent changes to members' base electric charges.
