With the adoption of the new rates, MCEC will also bring back the Wholesale Power Cost Adjustment to the electric bill. Starting with the April first bill, you will see an additional line designated "Power Cost Adjustment". This item was used up until the mid 1990s as a way to capture increasing power costs and not have to redo rate structures all the time. The WPCA is determined by setting a yearly power cost (usually the estimated amount from the G& T) then raising and lowering bills based on the monthly power cost. An example would be that if you used 1,000 kWh per month and we based the yearly WPCA on the cost listed above in the first paragraph at 6.9 cents and in June the power cost was 6.8 cents, you would receive a credit based upon 1,000 kWh multiplied by 0.1 cents. The opposite is also in effect, that if the power cost was 7.0 cents you would be charged 1,000 kWh multiplied by 0.1 cents. This WPCA factor will be reviewed yearly and set by the Board of Directors here at MCEC.
What is the Wholesale Power Cost Adjustment (WPCA)?
The Wholesale Power Cost Adjustment is the component on your electric bill that directly reflects the cost of the fuels used to generate electricity. We recover these increased costs from members through the WPCA.
The WPCA fuel charge represents the cost of coal, natural gas, propane or other fuels that are used to generate electricity.How is it Calculated?
The total WPCA shown on the members bill is calculated by multiplying the WPCA rate by the amount of electricity measured in kWh that is consumed.
The WPCA on your electric bill is in direct proportion to the cost of power we supply you.A Good Analogy!
You can think about the impact the WPCA has on your electric bill in the same way you look at how the price of gasoline affects the cost of operating your car. Even though your montly car payment (your electricity delivery rate) has not gone up, the car you drive costs more to operate now because gasoline prices have increased (as have prices for other fuels used to generate electricity).
We will continually be aggressive in offering the best service available and having reliable electricity at the most affordable cost possible.
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We are making these devices available to our membership so that they can monitor power consumption on any 120V appliance. For more information contact Allan Masterson at mcec@htc.net or 939-7171.
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