(a) Energy adjustment clause. Effective with billings subsequent to November 1, 2015, to all consumers of electrical current and electrical energy, the city will compute the actual costs of energy purchase and of production for each kilowatt hour. The NKWH is defined to reflect the calendar month system requirements as determined by the customer billing software. The base energy cost per net kilowatt hour (NKWH) in accordance with the foregoing rates is the rate as billed by Kansas Power Pool, the city’s power provider. All costs and KWH usage are concurrent. (For example, the power we generate in July and costs associated with that generation are concurrent). The difference in energy cost per NKWH and the base cost per NKWH shall be calculated on the formula below to, account for distribution losses and energy furnished free by the municipal electric utility to the city. Energy costs shall be determined from the cost of natural gas, diesel oil, lubricating oil and/or energy purchased. The additional cost of production of each kilowatt hour shall be computed as herein set forth and added to the monthly bill of all consumers. There will only be a credit given when the formula results in a negative adjustment for three consecutive months; however, no monthly bill shall be reduced below the monthly minimum bill.
(b) Electric rates, energy adjustment clause. The following provisions apply to electric rates, energy adjustment clause:
(1) Rates and charges for electric service for the current month provided by the city shall be increased or decreased by 0.001 cent, or major fraction thereof, increase or decrease in the aggregate cost of energy per kWh as computed by the following formula:
(F + P + Nl)/0.01S - the rate as billed by the Kansas Power Pool= Adjustment
Where:
F | = | Actual dollar cost of fossil fuel burned during the current month to supply electric energy to customers |
P | = | Actual Total cost of purchased power and energy during the current month to supply electric energy to customers |
N1 | = | Actual net dollar cost of interchange received less interchange sales during the current month |
S | = | Actual kWh delivered to retail and wholesale customers during current month. The current month is defined as the calendar month during which energy is being used by wholesale and retail customers |
(2) The adjustment computed under division (b)(1) above will be increased or decreased by the amount (to the nearest 0.001 cent per kWh) by which the total amount billed to customers under the energy adjustment in the previous month was greater or less than the actual cost of energy experienced during that month. No credits will be given unless the formula results in a negative adjustment for three consecutive months. The actual cost of energy will be calculated using the formula in subsection (b)(1) with components defined as in division (b)(1) above, except that the fuel cost (F) will be reduced by any specified refunds received.
(Ord. 2056, passed 10-10-2019)