Clay Electric has informed its members of an impending rate increase due to projected higher costs in generating wholesale electricity. The adjustment, known as the Power Cost Adjustment (PCA), is anticipated to impact members’ January billing cycle.
Data indicating a future rise in wholesale electricity generation costs prompted the cooperative to implement the rate increase. During the January billing cycle, members using the industry household average of 1,000 kWh of power will see a $14 increase, bringing their total to $134. The specific additional amount each member pays monthly will vary based on individual electricity usage.
In 2023, Clay Electric managed to lower the cost of power four times through Power Cost Adjustments, resulting in a cumulative 20 percent drop from January to its lowest point in 2023.
The PCA is represented as a separate line item on Clay Electric’s billing statements, reflecting either an increase or decrease in the cooperative’s cost of power. When the cost of power exceeds the amount included in the base rate, the PCA is a charge, while it functions as a credit when the cost is less.
The forecast points to an expected increase in the cost of natural gas, a primary source for generating electricity in Florida and a significant component of the generation mix for the Seminole Electric Cooperative, Clay’s wholesale power provider.
It is crucial to note that, as a not-for-profit cooperative, Clay Electric members receive power at cost. At the end of each year, when the determination is made regarding the excess revenue over total expenses, members receive the difference as a capital credit, based on the amount each member was billed for electricity throughout the year.
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