CITY OF CUERO
Power Cost Adjustment (PCA)

SCHEDULE PCA

Effective January 1, 2005

The purpose of this schedule is to accurately recover from City customers the cost of wholesale power purchases in excess of the base amount included in the City's electric retail rate schedules. All wholesale power cost realized above the base amount shall be billed by the City on its monthly bills as a Power Cost Adjustment (PCA) charge determined by multiplying the billing kWh for these current month times a Power Cost Adjustment Factor (PCAF).

The formula for calculation of the PCAF is as follows:

PCAF

=

WC - (P) (K) - CF

S

PCAF

=

Power cost adjustment ($ per kWhr) rounded to the nearest 0.0001 cents.

WC

=

Total cost of wholesale purchased power by the City from its supplier on an annualized basis. ($)

P

=

Total wholesale energy purchased by the City from its supplier on an annualized basis. (kWh)

S

=

Total estimated energy sales to City customers on an annualized basis. (kWh)

K

=

Base wholesale power cost included in the City's retail electric rate schedules. ($.0367 per kWh)

CF

=

Correction factor adjustment to be supplied to correct for any variance between actual PCA costs and revenues. The calculation CF shall be performed on a periodic basis, but not less than quarterly, with the results of this reconciliation applied to the PCAF on an as-needed basis to maintain PCA revenues and costs in close proximity.

Where

(A)

=

The actual power cost adjustment revenues received from the application of the Power Cost Adjustment Factor for the subject reconciliation period.

(B)

=

The actual wholesale power cost adjustment costs which should have been recovered fro the application of the Power Cost Adjustment Factor for the subject reconciliation period.