(a) All rates hereby established are based on a total fuel and purchased power cost of $0.032 per net KWH generated and/or purchased from another electrical utility, including all delivery and transmission cost associated with delivering resources to the city. Whenever the actual average total cost per KWH of power purchased or generated over the previous 12 months multiplied by the system loss factor differs from the base cost of $0.032 the rates established shall be increased/decreased by $0.00001 per KWH for each $0.00001 of such difference from the base cost.
(b) This adjustment shall be made each month. The system loss factor is hereby established as 10% 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 all components of purchased power contracts. Application of the energy cost adjustment shall be at the option of the city. Amounts added to or deducted from bills under the above adjustment shall not be reduced by any other adjustment or discount, nor shall such amounts reduce the minimum bill.
(Ord. 1451, passed 6-21-2005; Ord. 1482, passed 7-3-2006; Ord. 1506, passed 7-3-2007; Ord. 1524, passed 7-1-2008; Ord. 1537, passed 3-24-2009; Ord. 1644, passed 3-17-2015)