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125 W. Main Street Sun Prairie, WI 53590   608.837.5500

2017 Power Cost Adjustment

Sun Prairie Utilities would like to inform all of our electric customers of an operational change of our wholesale energy provider, WPPI Energy, Inc., and how WPPI Energy monthly billings to Sun Prairie Utilities will affect the rate payers of Sun Prairie Utilities.

 

As practiced in years prior to 2017, WPPI Energy would charge base rates for energy (kilowatt hours, kWh) and power (kilowatts, kW) for all consumption used for the previous month throughout Sun Prairie. There would be a power cost adjustment (PCA) from the previous month as well that is used to adjust for cost fluctuations in wholesale market energy purchases. SPU utilizes a similar monthly PCA component in our monthly bills to rate payers. This PCA has been billed and collected with somewhat of a lag from the actual consumption units and pricing.

 

 WPPI Energy 2017 rates structure now reflect the actual realized seasonal market pricing with the monthly PCA billed to Sun Prairie Utilities. This will also then be reflected similarly to the monthly SPU rate payer bills. SPU rate payers will be paying less PCA per kWh in the months that regional energy market demands and pricing are lower (in comparison to previous years), and pay more PCA per kWh in the months that regional energy market demands and pricing is higher (in comparison to previous years).

                                                           

SPU rate payers should see lower relative PCA through the winter, spring, and fall months, but higher relative PCA through the summer season when market pricing is higher. The net effect projected for the 12 months of 2017 is estimated to be a net increase of 1.2%-2.2% in total, due to market energy fluctuations.

                                                         

SPU wishes to inform our rate payers now of this change to have a realization that these first few months of 2017 billings should be at a savings in relation to 2016 rates, which can help to offset the steeper PCA increase to be seen through the summer season.

 

SPU does offer monthly budget billing which would be one way to equalize the monthly swing of PCA. Budget billing is a fixed amount due each month that SPU estimates over the year (August- June) would cover your actual consumption. SPU trues up all budget customers with the bills due in July. To request budget billing use the Ask Us, Tell Us form from any page on our website, or call 837-5500.


Posted on Wednesday, Jan 11, 2017

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