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December 2007

Power Cost Adjustment Stays at Zero

Second month of no adder to power bills

For the second month in a row, Walton EMC customer-owners are enjoying no power cost adjustment (PCA) to their electric bills.

The purpose of the PCA is to allow for temporary fluctuations in what Walton EMC pays for electricity without making changes to the entire retail rate schedule. It protects the cooperative and its customer-owners from both under and over collecting on wholesale power costs.

Because energy prices soared, it was necessary to implement the first positive PCA in several years in May 2006. At that time, $7 for every 1,000 kilowatt-hours (kWh) purchased was added to every Walton EMC bill.

The PCA rose to a high this past August of $9 per 1,000 kWh and remained there until October. Wholesale prices allowed the cooperative to discontinue the PCA on November bills. It remains at zero this month.

“We’re glad wholesale prices allowed us to get a break from the power cost adjustment adder,” said CEO Ronnie Lee. “It comes at a good time when families are facing holiday expenses.”

“This, coupled with our $3 million capital credit refund, should give families a little economic boost during the holidays,” Lee added.

 

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