What is PCRF?

PCRF stands for power cost recovery factor and is a line item on your bill. PCRF helps the Cooperative avoid large, permanent rate adjustments, which are very expensive to implement.

How does SPEC manage PCRF?

The South Plains Electric Cooperative Board regularly analyzes electric rates to make sure they are covering current costs to serve you. The largest part of every dollar you send to the Co-op goes to buy power—up to 76¢ currently.

Since our goal is to keep your rates as close to break-even as possible, not to make a profit, the PCRF allows the Cooperative to bill you as close to at-cost as possible every month.

Why does the PCRF change?

If you’ve noticed the price of gas for your vehicle going up, then you won’t be surprised to learn the price of natural gas is doing the same. Ninety-nine percent of your power comes from natural gas, along with renewables such as wind and solar. Natural gas prices are trending down and members will soon see it reflected in a lower PCRF. Natural gas was showing $3.27 in January 2023   and February 2023 is projected at $3.109.

What is SPEC doing to keep costs low?

Remember that every penny of the PCRF goes to buy power for you. SPEC is not making a profit on PCRF because we are a not-for-profit cooperative efficiently operating the day-to-day business on about 23¢ on the dollar.

If you want to know more about power cost recovery factor, click here to watch a video for further explanation or give us a call at 806-775-7766.