PCA - Power Cost Adjustment
PCA FAQs
What is the Power Cost Adjustment (PCA)?
As a not-for-profit cooperative, state law prevents NOVEC from earning a margin (profit) on electricity it purchases for delivery to customers. Instead, the actual cost of purchased power is passed through to customers without any mark-up.
Each fall the Co-op forecasts its energy costs and the amount of energy all of its customers will use the next year. While those forecasts are thoroughly researched, it is not surprising they differ from the actual purchased power costs.
NOVEC is required to reconcile the difference, and the reconciliation occurs through the PCA line item on customers’ monthly bills. The PCA can be a credit or a charge.
Where does NOVEC get its electricity from?
NOVEC is a “poles and wires” distribution company, bringing affordable and reliable electric energy from the regional transmission system to customers through our electric lines. The monthly service and distribution charges on your electric bill pay for this infrastructure.
NOVEC takes service from the Dominion Energy transmission system, which includes 230kV and 500kV high-voltage lines across the state; they interconnect with transmission systems in other states. While Dominion Energy owns and maintains these transmission assets, the interstate transmission system is operated by PJM Interconnection. Located in Valley Forge, Pennsylvania, it coordinates the movement of electricity in all or parts of 13 states and the District of Columbia.
Generation of electric energy comes from nuclear, natural gas, coal, wind, and solar plants throughout PJM’s territory. PJM manages this marketplace daily, but it also keeps an eye on future generation.
On peak load days in summer and winter, Virginia generally has a shortage of power generation, so PJM uses the transmission system to bring electric energy into the commonwealth from neighboring states. Supply charges and the power cost adjustment on your electric bill pay for transmission and generation.
How does NOVEC control its purchased power costs?
To protect against rising power costs, NOVEC locks in fixed prices and quantities for a substantial portion of the electricity customers are forecast to use. Because customers’ energy needs change daily, NOVEC cannot lock-in prices on all of the power it purchases.
2026 Customer Notice
Effective January 1, 2026, NOVEC implemented an updated Power Cost Adjustment (PCA).
As of January 1, 2026, the PCA as it appears on customer bills increased 1.1 cents per kWh to a charge of $0.01320 per kWh. For a residential member using an average 1,000 kWh per month, the net impact results in an approximate $11.20 increase in the monthly bill.
As a not-for-profit electric cooperative, NOVEC does not earn a margin (profit) on wholesale power it purchases on behalf of its customers; costs are passed through to members without markup. Because the cost of electricity in the regional wholesale market (PJM Interconnection) is increasing, the Cooperative has modified its PCA to factor in those increased costs.
NOVEC works hard to keep costs as low as possible for members of the Cooperative. Measures already in place include large load customers having separate rate classifications, more frequent billing cycles, and paying directly for infrastructure dedicated to them. Those costs are not shared with residential members.
Even with this PCA adjustment, NOVEC remains among the lowest cost electricity providers in the state. From 2015 to 2025, NOVEC had the lowest increases in the state among all electric utilities, according to Virginia State Corporation Commission (SCC) data. NOVEC’s rates and terms of service are regulated by the SCC.
NOVEC recognizes the strain any increase in costs can pose. Please visit our Ways to Save page to learn more about energy efficiency programs and audits available to our members.
Members facing financial challenges are encouraged to contact NOVEC's customer care center at 703-335-0500 to discuss payment plans or visit our NOVEC Cares page to see options available to help.
