Trico's New Rates: Why does my bill seem higher than you said it would be?

We're hearing from Members that our rate increase seems a lot bigger than the 6.6 percent example we gave in our mailings.

When comparing your current bill with your old bills be sure to look at ALL the parts that comprise your bill, not just the rate. To compare 'apples to apples,' you have to consider kWh usage, the billing cycle and, last, but not least, the Power Cost Adjustor (PCA).

Trico’s kWh rate increased from $.096 to $.1216, but the Power Cost Adjustor (PCA) went down by half, from $.038 to $.019. (The PCA is an adjustor added to your bill to account for fluctuations in the wholesale power market. This adjustor is a pass-through. Trico remits these funds to AEPCO, Trico's wholesale power supplier, AEPCO.)

If you were to just look at the energy rate (e.g., the cost per kWh), it looks like our rates went up some 25 percent. However, with the PCA going down by half, the net effect on your bill is much lower.

So why did it seem like a higher increase? There are a few reasons.

First, the reduction to the PCA took place on your July bill (e.g., the bill you received in August), but the rate increase took place with your August bill (e.g., the bill you received in September.) The reduced PCA was supposed to go into effect with the August bill, at the same time as the rate increase. The idea was that the rate increase would be offset by the decrease in the PCA.

However, with the PCA dropping to 1.9 cents per kWh a month earlier than we planned, Trico customers July bills were actually lower than they would have been. So, to get an accurate picture of the true increase, you must compare your June electric bill (e.g., the bill you received in July) to your August bill.

This understandably led to a lot of confusion among our Members and also gave the appearance of a much higher rate increase than we actually implemented. We sincerely apologize for this confusion and miscommunication.

Other reasons your bill was higher include August's hotter temperatures as well as longer billing cycles for some customers. 

We know that this increase has had a big impact on you. Please take a moment to visit our Home Energy Savings for tips on ways to cut your electric bill.

New Time of Use Rates

Trico’s new TOU rates went into effect October 1. Many folks have wondered why we increased the rates as much as we did and how this will affect them. Although the TOU rate has increased, you can still save significantly on the TOU rate by shifting your usage to the off-peak periods.

Trico’s old TOU rates were set back in 1992. Trico members on the TOU rate had the benefit of a very low rate for many years. In fact, the TOU rates were so low that those on it didn’t have to change their lifestyle, i.e., shift their energy consumption to off-peak times, to save money on the rate. Everyone was saving no matter how they used electricity, which defeated the purpose of having a TOU program. Overall, the TOU program was costly to the Trico Membership, costing about $1 million each year.

The goal of TOU program is to give Members an incentive—a much lower rate, $.0732—to use energy off peak. Conversely, the TOU program also has a disincentive—a much higher rate, $.1932—for using power on peak. The idea is that the more you use off peak, the more you’ll save. When Members shift their energy usage to off-peak times, they benefit because their electric bill is lower. Trico benefits as well because it’s cheaper for Trico to obtain power during off-peak peak times

We understand that a rate increase impacts all our Members. We offer energy efficiency and conservation tools to help you better manager your energy usage and electric bills. Visit Home / Home Energy Savings for more info.


For more information on Trico's rates, visit Home / Your Bill / Rates.