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Power Cost Adjustment Clause

All metered rates shall be subject to a positive or negative power cost adjustment charge equivalent to the amount by which the current cost of power (per kilowatt-hour of sales) is greater or lesser than the base cost of power purchased (per kilowatt-hour of sales)

The current cost per kilowatt-hour of energy billed is equal to the cost of power purchased for the most recent month, divided by the kilowatt-hours of energy sold. The monthly adjustment (rounded to the nearest one one-hundredth of a cent) is equal to the current cost less the base cost. The base cost until changed by the Public Service Commission of Wisconsin, is $0.0470 per kilowatt-hour.

Periodic changes shall be made to maintain the proper relative structure of the rates and to insure that power costs are being equitably recovered from the various rate classes. If, after final wholesale rates have been authorized, the monthly adjustment (A) exceeds $0.0150 per kilowatt-hour, the company shall file a request with the Public Service Commission of Wisconsin within 30 days for changes in the rates to incorporate a portion for the power cost adjustment into the base rates.

For purposes of calculating the power cost adjustment charge, the following formula shall be used:

A The power cost adjustment rate in dollars per kilowatt-hour rounded to four decimal places applied on a per kilowatt-hour basis to all metered sales of electricity.

S The total kilowatt-hours sold during the preceding month.

U The average cost of power purchased per kilowatt-hour of sales for the test year period. This figure remains constant in each subsequent monthly calculations at $0.0470 per kilowatt-hour until otherwise changed by the Public Service Commission of Wisconsin.

C The cost of power purchased in dollars in the preceding month. Cost of power purchased for calculations of C are the monthly amounts which would be recorded in the following accounts of the Uniform Systems of Accounts:

Class A & B utilities Accounts 555

Class C utilities Accounts 545

Class D utilities Accounts 540

A complete set of Authorized Rates and Rules
is available at the Utility Office.