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Georgetown Utilities & Customer Care

Frequently Asked Questions – Electric

What is the power cost adjustment (PCA)?

The PCA is a rate recovery mechanism that is widely used in the electric industry to recover costs that are above the budgeted purchased power costs. The City of Georgetown uses the PCA to recover costs above the budgeted purchased power costs in order to ensure the stability of the electric fund.

The City increased the PCA in January 2019 and in June in 2019 in response to increased purchased power costs. The current PCA is 2.375 cents per kilowatt hour. As a result, the average customer, using 1,000 kilowatt hours per month, experienced a $23.75 increase on their monthly bill.

What is the City doing to reduce electric rates and the PCA?

In FY 2019, the City worked to improve the finances of the electric utility to account for increased energy costs to meet its financial reserve requirements. This included selling assets, increasing rates, decreasing expenses, and completing a management assessment. The City hired a new general manager for its electric utility in October 2019. Based on the management assessment, the City updated its energy risk management policy. Shell Energy North America was hired in December 2019 to be the City’s energy manager to assist in managing the energy portfolio and also to be the City’s Qualified Scheduling Entity (QSE). The City’s top priority is to reduce electric costs and the PCA while improving the financial stability of the electric fund.

Is the City’s contract energy 100 percent renewable?

The City has renewable energy power purchase agreements with AEP, EDF, and Clearway. We also have a traditional PPA with Mercuria. We have been selling our renewable energy credits (RECs) from renewable energy power purchase agreements to reduce our overall purchased power costs. Because we sell our RECs, Georgetown cannot and will not use the 100 percent renewable tag.

Where does Georgetown get its electricity?

Power contracts: The City of Georgetown electric utility purchases power on the wholesale market through purchased power contracts. These are the current purchased power contracts supplying energy to the utility.

Energy company Source and location Contract Capacity


Contract dates for energy
Clearway Buckthorn Westex solar farm in Fort Stockton, TX 154 2018-2043
EDF Renewable Energy Spinning Spur 3 wind farm west of Amarillo, TX 144 2015-2035
American Electric Power South Trent wind farm in West Texas 20 2009-2028
Mercuria Firm energy delivered at ERCOT South Hub 20 2016-2021

If you have a question about the City’s current electric challenge, or would like to request a presentation from the Electric Department at a community event, please email

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