In theory, there should be less contracted energy in the customer’s vintage, however other variables affect the Power Charge Indifference Adjustment (PCIA), such as the market value of energy. In recent years, the market value of conventional energy, which is heavily influenced by natural gas prices, has declined. Additionally, renewable energy prices have declined. Both of these factors cause the PCIA to increase even though the contracted volume of the energy resource may be less than the previous year.
