power charge indifference adjustment

The Power Charge Indifference Adjustment (PCIA) is a charge that utilities in some jurisdictions may impose on customers who generate their own electricity, such as through solar panels or other forms of distributed energy resources (DERs).

The PCIA is meant to address the potential cost shifts that can occur when customers with DERs reduce their demand from the utility, thereby reducing the revenue that the utility collects to cover fixed costs like grid maintenance and infrastructure investments. The PCIA is intended to ensure that these fixed costs are fairly allocated among all customers, whether or not they generate their own electricity.

The PCIA is calculated based on the difference between the utility's cost of procuring power from other sources and the avoided cost of power that the utility would have incurred if the customer had not generated their own electricity. The PCIA may be adjusted periodically to reflect changes in the utility's costs and other factors.

The PCIA is a controversial issue in some jurisdictions, with some stakeholders arguing that it can unfairly discourage the adoption of DERs and limit customer choice. Others argue that the PCIA is necessary to ensure that all customers pay their fair share of fixed grid costs, and that DER customers should not be subsidized by non-DER customers.