Letter to the editor

Dear Editor: I am writing in reference to the letter to the editor that appeared in the Brady Standard from Jan Walmer. I first want to thank Jan for taking the time to provide this information to the citizens. We have indeed seen an increase in our wholesale purchases, however, it’s really hard to pinpoint the reason for the increase without knowing several more factors. One example would be to know how many KWh were purchase for each month. I have been conducting a analysis of our electric utility billing. I am able to do this through open records request. The increase can be attributed not only to the increased fuel cost, but also because the City is now charging the citizens a higher percentage of the fuel cost. In plain English the city is incurring less fuel cost per Kilowatt hour in our base rate of .0742 and passing the cost onto the citizens through the PRCF adjustment. I am attaching a graph that shows what the citizens of Brady have paid for 1,000 KWh in comparison to others, this information is very telling. Also included is a PCRF analysis chart that provides the detailed information concerning the whole picture of what has transpired in reference to the PRCF adjustment. According to the information provided by the Texas Public Utilities Commission, the total amount billed for electric service is made up of two parts. The first part is the base rate, the second part is an adjustment for wholesale power costs not included in the base rate. Customers are charged for any purchased power bought by the utility through a purchased cost recovery factor (PCRF). The PCRF identifies the amount of purchased power cost that is being passed through to them. The PCRF charge (or credit) per kilowatt hour (KWh) is applied to all KWh usage and it changes monthly. The difference between the amounts recovered and the costs actually incurred is subject to reconciliation. The PCRF (also known as the Purchased Cost Recovery Factor) reflects the varying cost of wholesale power. The formula for calculating the PCRF is: PCRF = (A – B)/KWH; EXEMPTIONS: None; STATUTE(S): PURA ‘ 36.205 & 36.206; PUC Substantive Rule ‘ 25.238. The Texas Public Utilities told me they could not under the law regulate municipalities, according to them the only ones that can do that are the citizens. It is interesting to note that MEC has a residential service charge of $7 per month and charges .07752 per Kilowatt hour. The City of Brady charges a $5 per month service charge on residential and .0742 per Kwh. I have sent a request to be allowed to address this at the next City Council meeting. If anyone has any questions I would be glad to try and answer them. Gayla Bowen Brady, Tex.

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