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.
In 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 the implementation of the PCA, rates would need to be changed constantly to reflect the actual cost of power.
The PCA is calculated using the most recent six months of actual power costs and applied to each customer 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.