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MDTE #267
Designation
Purchase Power Adjustment Clause
Applicable
Purchase Power Adjustment
There shall be added to, or credited to, each monthly bill an amount equal to the total kilowatt hours billed during the month, multiplied by the Purchase Power Adjustment factor determined monthly as follows:
A. |
Total purchased power cost including ISO interchange charged to Account 555 and 557* for the month divided by:
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B.
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Estimated kilowatt hours to be sold during the month will be compared to:
Base period cost of purchased power per kwh sold, amounting to $0.100186 per kwh
The difference between the base cost and the monthly cost per kwh estimated to be sold would be applied in the monthly billing period. The Purchase Power Adjustment (PPA) will be calculated as follows:
PPA = (A/B) - $0.100186 |
*An adjustment to the purchased power cost shall be made each quarter to reflect the difference between estimated and actual purchased power costs and kwh's sold in the prior quarter in order to recover or credit any under collection or over collection of purchased power charges.
Issued: December 15, 2006
Effective: January 2007
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