FPUA board approves $3-per-1,000-kWh reduction in power cost adjustment, effective July 1

The Fort Pierce Utilities Authority on May 7 approved a $3 reduction in the power cost adjustment (PCA), meaning residential and commercial customers will see a credit of $3 per 1,000 kilowatt-hours effective July 1, 2024.

Chief Financial Officer Micah, presenting the March PCA update, said staff were shifting to a 12-month window for PCA calculation to stabilize the rate-stabilization fund and cited a March average purchased-power cost of $67.58 per megawatt-hour. "With consideration to the current and near future projections, staff is recommending a reduction in the power cost adjustment of $3 for 1,000 kilowatt hours of consumption ... effective 07/01/2024," Micah said.

Why it matters: staff told the board the change would return a short-term credit to customers while preserving the rate-stabilization fund target and avoiding sharp month-to-month swings in the PCA. Micah noted staff recovered about $127,000 in power cost in March and presented a quarter shortfall of about $443,000; staff reported an overall over-collection figure in their presentation.

Board members discussed whether the PCA could be made more negative and the tradeoffs involved; Micah and Cisneros recommended a modest reduction now with monthly monitoring and potential incremental reductions later if forecasts support it. A motion to approve the $3 PCA reduction was moved, seconded and approved by unanimous roll call.

Next steps: staff will monitor FMPA forecasts and monthly results and report back if updated projections support further adjustments.