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How we pay for electricity

Guest View

January 9, 2013
Ed Sadler - City Manager, Webster City , The Daily Freeman Journal

Just what goes into figuring how much we pay for electricity? Currently, we pay for electricity based on three things: 1) Energy charges, or the kilowatt hours (KWH) that we use, 2) the energy demand and 3) the transmission demand. In days gone by, we also used to pay for something called "Price Cost Adjustment" (PCA) which went up and down based on the cost of fuel (in our case, the price of coal), but there is no longer a separate charge for this item. Now, just what are these three items we are paying for?



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