Effective for all bills issued on and after May 1, 2014, the charges to all customers for each kilowatt hour (kwh) supplied under all rates except for market rates and those with a separate contract shall be adjusted by a Purchased Power Adjustment Factor (PPAF) to reflect the actual changes in the cost of purchased power. The PPAF will be determined to the nearest $0.0001 in accordance with the following formula: ((PP plus T minus WR) / K) multiplied by (TKP divided by TKS) minus BC
The PPAF shall be calculated and applied to customer bills on a monthly basis consistent with the above calculation except for those customers that use budget billing. Budget billing customers will have the PPAF applied on a monthly basis but will accumulate the adjustment and such adjustment will be incorporated when the budget billing amount is adjusted as required.
In the event that the information necessary to calculate the PPAF is delayed or unavailable, the PPAF may be calculated and applied in the following month in order to avoid a delay in the issuance of billings.