What is the fuel adjustment?
PURPOSE OF THE ENERGY COST ADJUSTMENT (ECA)
The city, with its power purchase agreements, buys power on a wholesale basis through the Kansas Municipal Energy Agency. The cost of power is volatile and unpredictable depending on the availability of resources, fuel charges, operating costs, and power market conditions. The purpose of the ECA is to allow the city to recover costs by passing them on to the customers when the cost to purchase and transmit the power to the customers exceeds its base power rates.
APPLICATION
The ECA is applicable to all classes of meters regardless of the amount of electricity the end user consumes and is calculated on a monthly basis.
FORMULA TO CALCULATE THE ECA
The formula to calculate the ECA can be found in City Code 15-312 and is as follows:
- ([(P +G+ O)/(K+C)] x L) - (B) = Adjustment
- P = The current month actual total cost of power purchased.
- G = The current month actual total cost of City generation.
- O = The current month actual total cost of any other associated power supply expenses.
- K = The current month actual total kWh of the delivered purchased power.
- C = The current month actual total kWh of the delivered City generation power.
- L = The current City losses determined annually (((Purchased Power+City Generation)-City Billed))/City Billed).
- B = The Base will be established by a fee resolution, as specified in Section 15-308