POWER COST ADJUSTMENT

Applicable
To all services being served by High West Energy and applied to energy charges.

Available
To all areas being served by High West Energy.

Type of Service
All services served by High West Energy.

Rate

Calculations
The monthly amount charge for each kWh of energy sold by High West Energy may be increased or decreased by an amount equal to the difference in the average wholesale power expenses for the calendar year and the average wholesale power expenses recovered through base rates and the PCA charges or credits, divided by an estimate of the remaining kWh sales in the calendar year. The average wholesale power expenses shall be determined each month based on the annual forecasted purchased power cost that is updated for actuals as they become available. Any over-, or under-, recovery of purchased power expenses at the end of the calendar year shall be rolled into the PCA charges/credits in the next calendar year.

The formular for determining the monthly PCA is as follows:

PCA = (PPE – PPR)/KWH + OUR

Where:
PPE = Estimated purchased power expenses updated for actual expenses as they become available.
PPR = Purchased power expenses recovered through the base rates and the application of the PCA mechanism.
KWH = Estimated kWh sales for the remaining months of the calendar year.
OUR = Over/Under Recovery from the prior year mechanism.