(A) Applicability. The power cost adjustment set forth herein shall apply to the utility’s electric rate schedules that are subject to this rider. The applicable adjustment shall be applied to the total kilowatt-hours billed to the consumer for the meter reading period that the utility determines as most nearly corresponding to the meter reading period(s) set forth in the utility’s power billings from its supplier(s).
(B) Overview.
(1) Intent. This PCA calculation is intended to be based on forward-looking projections of fuel, purchased power and other power supply-related costs (power supply costs), as well as projections of customer sales (kilowatt-hours), for the power cost recovery period. The calculation is further intended to be performed at a minimum six-month interval, or more frequently if required, to accomplish recovery of power supply costs in a timely manner. The calculation includes a provision to reconcile over- or under-collection of costs from previous periods based on actual cost versus projected cost for the period.
(2) Calculation frequency.
(a) Generally. The PCA calculation shall be performed every six months. The PCA calculation shall be reviewed and new projections shall be made for the subsequent six-month periods (i.e., August and February of each year). Following such PCA review and calculation, the PCA shall be applied as deemed necessary to recover the power supply costs in a timely manner.
(b) Increased frequency. The PCA shall be recalculated and applied at intervals more frequent than six months if actual power supply costs vary significantly from projections.
(C) Base power cost. The rates and charges set forth in the utility’s rate schedules are based on the cost of the utility’s power requirements, including purchase power, fuel costs and/or purchase power billing adjustments. The base power cost included in the utility’s rate schedules is $0.07930 per kilowatt-hour.
(D) Determination of power cost adjustment.
(1) Power cost adjustment (PCA).
(a) Scope. The utility shall recover through the PCA the power cost component (PCC) plus the reconciliation adjustment (RA).
(b) Calculation. The formula for calculating the PCA shall be expressed as follows.
PCA = (PCC + RA)
Where:
PCC: Power cost component as determined below, expressed in dollars per kilowatt-hour rounded to the nearest five decimal places.
RA: Reconciliation adjustment as determined below, expressed in dollars per kilowatt-hour rounded to the nearest five decimal places.
(2) Power cost component (PCC).
(a) Scope. The utility shall recover through the PCC the power cost component to be incurred during the succeeding six months.
(b) Calculation. The formula for calculating the PCC shall be expressed as follows.
PPC
PCC = -------- -- BPC
PES
Where:
PPC: Projected power costs for the succeeding six months, expressed in dollars.
PES: Projected energy sales, which shall be equal to the projected billing kilowatt-hours for the succeeding six months, excluding large power off-peak service.
BPC: Base power cost reflected in the rate schedules of $0.07930 per kilowatt-hour.
(3) Reconciliation adjustment (RA).
(a) Scope. The utility shall, through the RA, either:
1. Recover the actual power costs incurred during the prior six months which were in excess of the power costs collected during that same period; or
2. Refund the power costs collected during the prior six months which were in excess of the actual power costs incurred during that same period.
(b) Calculation. The formula for calculating the RA shall be expressed as follows.
APC - PCR
RA = ----------------- .........................(3)
PES
Where:
RA = ----------------- .........................(3)
PES
Where:
APC: Actual power cost which incurred during the prior six months, expressed in dollars, calculated in a manner consistent with the PPC for that period plus the previous reconciliation amount.
PCR: Power cost revenue, which shall be equal to the revenue billed during the prior six months under the power cost adjustment (PCA) and the base power cost (BPC) included in the base rates, expressed in dollars.
PES: Projected energy sales which shall be equal to the projected billing kilowatt-hours for the succeeding six months.
(Ord. 14-2017, passed 10-10-2017; Ord. 6-2022, passed 6-27-2022)