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