The fuel and purchased power cost adjustment shall consist of an increase or decrease of 0.0106 mills per kWh for each full 0.01 mill per kWh that the previous 12 month average cost of fuel and purchased power is above or below 45.00 mills per kWh delivered to the distribution system.
The adjustment shall apply to the second billing month following the calendar month in which the fuel is burned and/or the energy is produced.
If the average power factor during the billing period is .900 or higher, the capacity charge will be reduced by 2%. The credit shall not be used to reduce the minimum charge or the capacity charge when based upon 60% of the highest billing demand of the preceding 11 months.
If the average power factor during the billing period is less than .800, the capacity charge will be increased by the ratio between .800 and the customer’s average power factor during the billing period.
Energy Optimization Fee
This fee is designed to recover Energy Optimization Program costs, as required by 2008 PA 295.