Power Cost Adjustment

As a municipal utility, Marshfield Utilities is authorized by the Public Service Commission of Wisconsin to have a PCAC (power cost adjustment clause) in our rates. This rate varies each month, and is calculated to be the monthly cost of power that we purchase from Wisconsin Public Service Corporation divided by the total number of kilowatt hours sold by Marshfield Utilities, less the base cost of power that is built into our rates from 2017. This PCAC allows Marshfield Utilities to pass on savings to our customers or recover additional costs for the cost of power that is under or over our base cost of power built into our electric rates. The PCAC rate is the same for all classes of residential and commercial customers. There is a one month delay in the calculation of the PCAC. The rate that is shown on this month’s statement is based on the prior month’s calculation.

As an example, if the cost of our power divided by the kilowatt hours sold that month is $.055 (5.5 cents), and our base cost of power built into our rates is $.0528 (5.28 cents), the PCAC for the current month would be $.0022 (.22 cents).This $.0022 would then be multiplied by the kilowatt hours billed to you this month to arrive at the PCAC amount billed.

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