Utility director reports higher power costs; PCA posted, new base rates start Sept. 1
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Summary
Utility director reported higher power costs and posted this month’s power cost adjustment (PCA); staff said higher temperatures and market costs contributed and reminded the public new base rates take effect Sept. 1, which should reduce PCA.
At the meeting the City of Coldwater utility director reported the monthly power cost adjustment (PCA) and reviewed factors affecting power costs. The PCA for the month was 0.01822 for primary meters and 0.01877 for secondary meters, and staff said higher temperatures and elevated market power costs were contributing factors.
The director noted Henry Hub natural gas futures are trading in a range of about $3.50 to $4.50 per MMBtu for the next 12 months, and said the board should expect higher power costs tied to fuel market conditions. He also reminded the public that new base rates will take effect Sept. 1 and that the utility expects the PCA to decline based on the new base rate structure.
The director used the report to acknowledge the interns introduced earlier and to remind the public of upcoming community events and deadlines: the utility will sponsor Entertainment Under the Stars next Tuesday, will continue a school supply drive through Aug. 13 for local schools, and city offices will be closed for Labor Day on Sept. 1 (payments accepted online). The director closed by offering to answer questions; none were raised.
No statutes or external authorities were cited in the director’s report portion of the meeting.