The Power Cost Adjustment
In addition to the base electric rates, each utility billing shall be adjusted for the cost of purchased power. The Power Cost Adjustment is shown on the utility bill as an “O”. The charge is solely related to the cost of electricity.
The PCA Adjustment shall be calculated according to the following formula:
PCA = [(P/S) * (1 + L)] – B
P = Wholesale power supplier cost – Utility cost of power during previous six-month period calculated using the most recent six months actual power cost plus periodic true up of accumulated positive or negative balance of recovered cost of power resulting from the application of the PCA. If an unusual occurrence happens resulting in abnormally high cost, the Management/Governing body will determine whether that cost should be recovered over a longer period
S = Number of kilowatt-hours sold – Sales are estimated by dividing kilowatt-hours purchased by (1 + L), during the same time period as factor “P”
L = System annual average losses (6.6%)
B = This amount reflects the average cost of power per kilowatt-hour sold and recovered through base retail rates ($0.09538)