2 Comments

  • Cindy S Rodet
    January 1, 2023

    Came to this site to find out what a power cost adjustment is and why I’m being charged for this but this site has no info. Can you answer my question about this? Is this something I can opt out of?

    • Kate Casselman
      January 19, 2023

      Power Cost Adjustment
      (Implemented March 2022)

      What is the Power Cost Adjustment item on my utility bill?

      On your utility bill, you will now notice a separate line item- “Power Cost Adjustment”. The City Council recently approved the PCA as a tool that has been implemented to protect both the customer and the city from fluctuating power supply costs. If power supply costs increase or decrease, the customer’s bill will be adjusted accordingly. This adjustment is listed as a separate line item on each City of Santa Clara utility bill. The adjustment will be based on a rolling six-month average and implemented monthly.

      Why do we need the Power Cost Adjustment?

      In the recent years, power supply costs have fluctuated very rapidly and unpredictably. Because of this, it is critical that the city makes sure costs are recovered. The city does not make any revenue from the PCA, it is a pass-through cost. It is important to realize that the PCA changes from month to month, and this is not due to a change in our electric rates, but due to the changing costs of the power supply. Without implementation of the PCA, rates would need to be changed constantly to reflect the actual cost of power.

      How is the Power Cost Adjustment calculated?

      The PCA is calculated using the most recent six months of actual power costs and applied to each customers following utility billed energy (kWh) or a two-month delay from when the cost occurred to when billed. The PCA will apply to all Santa Clara electric rate schedules, except non-metered and special contract rates.

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