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TID Power Supply Adjustment Fee to Remain Flat

by TCN Staff - info@turlockcitynews.com
May 25, 2014
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The Turlock Irrigation District will continue to give customers a half-cent credit per kilowatt-hour of electricity purchased, as the district pays back a large credit owed to customers.

The Power Supply Adjustment is either a charge or credit issued as part of customers’ bills, intended to reflect the varying costs of generating or purchasing electricity. The PSA, reviewed twice-yearly, allows rates to fluctuate as natural gas prices shift without conducting time-consuming rate change hearings.

The PSA can vary between a 1 cent per kilowatt-hour charge and a half-cent per kilowatt-hour credit.

Currently, TID owes $33 million in PSA charges to customers. Another year of the maximum half-cent per kilowatt-hour credit would drop the PSA reserve to $14 million.

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As such, TID customers are likely to receive the PSA credit well into 2015, or possibly later.

Tags: AdjustmentElectricityFeegovernmentIrrigationPowerRateTID
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