Power Cost Adjustment (PCA) - Rider

All kilowatt-hours sold will be adjusted to reflect the most current cost of power.  The monthly billing shall be adjusted upward or downward by an amount per kilowatt-hour to be calculated according to the following formula:

Power Cost Adjustment (PCA)   =   NCP / S

This factor shall be calculated to the nearest $0.000001 and when applied to bills will be rounded to the nearest cent.

DEFINITIONS

            NCP   =   Net Cost Of  Power 

Net Cost Of Power is the cost of power incurred by Hope Water & Light (HWL) in the preceding month after adjustments, i.e..                                  

NCP   =   TPC - TBC - C, where

TPC   =   Total Power Cost 

Total Power Cost is comprised of the following item:

1.  The monthly wholesale cost of purchased power delivered to  HWL by the Southwestern Electric Power Company (SWEPCO) for the preceding month.

2.  Adjustments to the purchased power cost resulting from "true-ups" as referenced in Agreement For Purchase And Sale Of Electric Power And Energy Between Southwestern Electric Power Company And The City Of Hope, Arkansas, dated 1-4-82 and amended 1-15-82.  

TBC   =   Total Base Cost  

Total Base Cost  is comprised of the sum of the following fixed costs as determined in the Hope Water And Light Electric Rate Study, August, 1994, Exhibit 6 and defined as follows:

TBC   =  BDC  +  BEC, where 

                        1. BDC   =   Base Demand Cost    =   $217,963.00

2. BEC   =  Base Energy Cost  =  Monthly purchased kilowatt-hours   X   $0.024537 per kilowatt-hour.

C     =   Over/Under Collection Of Revenue

The difference in revenue collected from the application of the PCA for the 2nd preceding month to the actual kilowatt-hours sold in the 2nd preceding month from Net Cost of Power (TPC-TBC-C) for the 2nd preceding month. 

S     =    All kilowatt-hours estimated to be sold during the month during which the Power Cost Adjustment (PCA) will be applied to customer bills.