Power cost reserve adjustment.
Columbus City Codes § 1163.03
in effect1163.03 - Power cost reserve adjustment.
The power cost reserve adjustment includes the power cost adjustment (PCA) and the operating reserve allocation (ORA). The power cost reserve adjustment shall be expressed in dollars per KWH. The adjustment shall be effective at the beginning of each month to reflect adjustments made for actual purchased power costs incurred during the third month preceding, as determined as part of the power cost adjustment calculation, and may include an operating reserve allocation component, relating to the current month's billing cycle.
The power cost reserve adjustment formula is as follows:
Power cost reserve adjustment = PCA + ORA
The rates set forth in the applicable rate schedules are based upon a PCB, or power cost base. The power cost base is the projected cost of purchased power per KWH, based on the total estimated cost of purchased power and the total estimated net electricity purchased, for the upcoming fiscal year, as of a referenced date (i.e., the reset date). This base may not reflect the actual cost of purchased power per KWH for a given month during the fiscal year; therefore, the monthly power cost adjustment formula is used to adjust the power cost base to the actual cost of purchased power per KWH for a given month. Consumer electric bills may increase or decrease based on the power cost adjustment and will be adjusted based upon energy used.
(1) "PCA" is the power cost adjustment calculation to reflect the actual cost of purchase power for a given month. The power cost adjustment charge or credit shall be determined within the nearest 1/1000 of a KWH in accordance with the following formula:
PCA = (Pm/(Egm+Epm) - PCB) × ((Egm + Epm)/Esm)
PCA = Power cost adjustment to be charged in accordance with the power cost reserve adjustment as set forth within this chapter. The power cost adjustment amount per KWH will be charged times the energy used during the current billing month along with the electric rates established in this chapter.
Pm = Net cost of purchased power for the third month preceding the current billing month.
Egm = Net energy produced by the O'Shaughnessy Generating Plant for the third month preceding the current billing month. This energy shall be omitted from the PCA formula during periods when it is not used to directly serve electric customers of the City of Columbus.
Epm = Net energy purchased from other parties during the third month preceding the current billing month
Esm = Total energy sales from customer meters read during the third month preceding the current billing month.
PCB = Power Cost Base = The estimated cost of purchased power over the fiscal year, to the nearest 1/1000 of a KWH, as of a referenced date (i.e., the reset date), based on the total estimated cost of purchased power for the fiscal year, divided by the total estimated net electricity, as stated in total KWH, to be purchased over the fiscal year.
(2) "ORA," the operating reserve allocation component of the power cost reserve adjustment, is an upward or downward adjustment in power cost reserve adjustment rate level as determined necessary by the Director of Columbus Water & Power or designee to maintain competitive rates and/or to provide revenue to meet established street lighting construction goals. The Director or designee may set or adjust the ORA monthly, provided, in no event, shall the director or designee set or adjust the ORA level to be greater than $0.008 per KWH above the PCA for the third month preceding.
(Ord. 2720-98 § 1; Ord. 422-06 § 2 (part); Ord. 1911-2006 § 1 (part); Ord. No. 1088-2009, § 1, 9-21-2009; Ord. No. 2839-2024, § 3, 11-25-2024; Ord. No. 1882-2026, § 1, 6-29-2026)
Source: City of Columbus, City Codes and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/oh/columbus/codes/code_of_ordinances?nodeId=TIT11WASEELCO_CH1163MUELRA_1163.03POCOREADFetched: 10/27/2026