The Public Service Commission of Wisconsin authorizes municipal utilities through an approved Rate File Schedule No. PCAC the ability to bill a monthly Power Cost Adjustment Clause (PCAC) charge to customers. The PCAC charge is applied to each individual customer’s total per kilowatt-hour (kWh) of electric metered usage for the previous month.
The PCAC varies monthly depending on the wholesale power costs in which Waupun Utilities has to pay to purchase the electricity we need to supply our customers. This adjustment reflects the difference between the actual cost of power each month and the base cost of power already included in rates. Through the monthly PCAC charge (or credit), it allows Waupun Utilities to only collect from our customers what we need to cover monthly purchased power costs.
When demand is higher for electricity (usually summer months), it costs Waupun Utilities more to purchase the electricity, which typically results in a positive PCAC charge on each customer’s bill based on total kWh of electric usage. When demand is lower, it costs less to purchase the electricity and customers typically see a negative PCAC charge, which reflects as a credit on the bill based on total kWh of electric usage.
As of recent, the cost to generate power has been rising throughout the utility industry due to global fuel pricing and extreme weather conditions. We are working hard to keep costs affordable through our non-profit business model and being a part of our joint action agency, WPPI Energy, who strives to have a diverse power supply portfolio.