1984 RES 4502 - Laserfiche WebLink

Browse Search

ATTACHMENT TO RESOLUTION NO. 4502 CITY OF COLTON PORTION OF R. W. BECK & ASSOCIATES REPORT DATED JUNE 22, 1984. The Power Cost Adjustment (PCA) is a mechanism which can be used by the Utility to collect from or refund to its customers variances in its power costs used for rate setting purposes from estimated to actual over which it has no direct control. These costs variances usually result from actual fuel costs being differ- ent from estimated fuel costs but can also be the result of changes in other power supply costs. The PCA proposed for the Utility is intended to allow for variances in all components of the Utility's power costs. First, an estimate is made of the Utility's cost of power. Included in this estimate would be purchased power costs from SCE and any other whole- sale supplier, costs associated with the Utility's share of Palo Verde (when it becomes operational) or any other generating plant in which the Utility might have a share and other power production costs (i. e. Power from cogenerators). Dividing this total by the estimated total sales gives a figure representing the revenue per kilowatt hour (base Power rate) the Utility needs to collect to meet its power costs, if all estimates are accurate. Generally, estimates are not 100 percent accurate so a Power Cost Adjustment Billing Factor (PCABF) is determined and applied to kwh sales to adjust revenues to more accurately reflect actual power costs. A PCABF based on monthly costs and sales can vary significant- ly from one month to the next. This variance can confuse and frus- trate the Utility's customers and can unduly complicate the Utility's billing procedures. In order to remove or at least reduce the monthly variances in the power rates the Utility charges its customers, it is proposed