Georgetown to provide electric rate relief to customers starting in January

For a residential customer whose monthly average consumption is 1,000 kWh, the change to the PCA charge will result in a reduction of $10 per month. (Courtesy Adobe Stock)
For a residential customer whose monthly average consumption is 1,000 kWh, the change to the PCA charge will result in a reduction of $10 per month. (Courtesy Adobe Stock)

For a residential customer whose monthly average consumption is 1,000 kWh, the change to the PCA charge will result in a reduction of $10 per month. (Courtesy Adobe Stock)

Georgetown electric utility customers will see a decrease to the power cost adjustment, or PCA, on their monthly electric bills starting with their January energy consumption, according to a news release from the city.

The city is decreasing the PCA charge by $0.01 per kilowatt hour, resulting in a new PCA of $0.01375 per kilowatt hour (kWh) from $0.02375 per kWh. Georgetown customers will see the change reflected on their January energy consumption, which will be billed in February, the release said. For a residential customer whose monthly average consumption is 1,000 kWh, the change to the PCA charge will result in a reduction of $10 per month.

The PCA is a tool widely used by electric utilities to help recover costs above the projected budget, the release said, adding the PCA charge is in addition to the regular charge per kilowatt hour for energy. The main energy charge, which for residential customers is $0.0958 per kilowatt hour, will remain the same.

“We have worked diligently in the past two years to improve the electric utility’s management and financial position,” Mayor Josh Schroeder said in the release. “We are starting to see the positive results in the form of improved electric fund position, which lets us lower the PCA for our customers. Our work isn’t done, but I’m proud of the progress we’ve made and know we’ll continue to do everything we can to lessen the burden on our customers.”

The electric fund has recovered enough for the utility to be able to provide this rate relief to customers due to several steps the city has taken in the past two years, per the release, including the following:

The electric fund ended Fiscal Year 2020 with a reserve of $28.4 million, which compares to an ending reserve of $5.9 million in FY 2019, the release said. It also said the ending fund balance for FY 2020 is healthy, and the utility meets all city budgetary and fiscal reserve requirements. The electric fund expects additional cost reductions when two energy contracts with Mercuria expire in 2021.