Understanding Your Rates
Let's face it. Understanding your electric bill and the rates that go into it, is not for the faint of heart. (Or the hater of fine print.) You might make faster work of such puzzlers as "What is the meaning of life" or "Why does my dog think about when I'm at work?" All the same, we'll do our best to lay out the basics here. Feel free to call customer service if you have additional questions.
First 600 kWh: 8.6¢/kWh
Next 400 kWh: 11.0¢/kWh
Over 1,000 kWh: 11.8¢/kWh
Nonsummer - November through April Usage
Base charge: $10.00
First 600 kWh: 8.6¢/kWh
Next 400 kWh: 8.2¢/kWh
Over 1,000 kWh: 7.8¢/kWh
Minimum Monthly Bill: $10.00
Let's Start With PCA
In recent years, the part of your electric bill called the PCA has caused concern and has prompted many questions.
The PCA, also called a "Power Cost Adjustment" or "Purchased Commodity Adjustment", is a means by which the price charged for electricity is adjusted to correspond with the costs that the City incurs to acquire and provide electric service.
Just as the price of equity stocks, gasoline or milk can change, so can the price of fuel used to generate electricity and the price of electricity bought from others on the commodity market. The monthly rates of all area utilities are based upon certain expected costs at the time the rate was enacted. The difference between these costs and the actual costs at the time the electricity is used by customers is charged by the various utilities as a PCA, a "fuel cost recovery" charge or "wholesale adjustment", among other names. Without the use of these adjustments, there would be constant rewriting of rates and constant confusion.
During 2007 and early-mid 2008, Covington's PCA became rather high but declined in late 2008 as the costs paid for electricity to our wholesale providers went down. In December of 2008, costs had declined to the point that no electric PCA was charged for bills sent out in that month, making for a nice Christmas present during an expensive time of the year.
The City Attorney Made Us Put In this Last Part (There will be a quiz at the end!)
13.08.270 Residential Service.
D. Purchased Power Adjustment. The amount calculated at the above rate is subject to increase or decrease under the provisions of the effective power cost adjustment clause; Schedule "PCA", as provided in Section 13.08.380B. of this chapter.