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POWER COST ADJUSTMENT
The power cost adjustment (PCA) is the
rate component that is a direct reflection of the fluctuating cost of
fuel required to run an electric generation plant.
Approximately 55% of the wholesale power
that we purchase is generated by Xcel Energy and 45% is purchased on the
open energy market.
When fuel prices rise, it costs more to
produce electricity and this is passed through to Delano Municipal
Utilities (DMU) and its customers by an increase in their PCA. So while
DMU’s rate for the price of electricity has not changed, customers are
paying more with an increased PCA.
Fuel prices do not affect just DMU.
Nearly every electric utility in the nation is facing this same issue.
With the growing use of natural gas as a fuel for electric generation,
demand for natural gas grows annually. As we all know, with demand high
and supplies lower, the price is going to rise.
To help curb the effects of high natural
gas prices, the Utility encourages all customers to conserve energy
where ever they can.
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