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Council and staff explain variable electricity PCA charge tied to LEPA invoices
Summary
Council staff clarified that the PCA (power cost adjustment) is a variable generation charge passed through from LEPA, that large contract customers are removed from the residential allocation, and that demand tiers ($2.36/$2.50) apply based on annual peak usage.
City staff told the council the city does not set the PCA — the variable portion of residents' utility bills is tied to the monthly generation invoice from LEPA and passed through to customers.
"The PCA charge is the actually, the the cost of generation. That is the bill that we get from LEPA," a utility staff member explained, saying the city separates large contract usage and divides the remaining costs among customers. Staff and council members noted the practice of excluding large industrial or institutional usage from the residential allocation can reduce the effective per-household charge.
Council members pressed for clarity on demand charges and tiers. A staff explanation described two demand rates — $2.36 for customers who peak over 5 megawatts in the year and $2.50 for customers below that threshold — designed to reflect usage tiers. Councilmember PT and others asked whether the billing treatment meaningfully alters resident bills; staff said the city controls only the base rate (which stays with the city) while the PCA and generation costs come directly from LEPA.
