Brady utility bills to see sharp increase this month

A string of cold days and nights in the month of February is going to have City of Brady utility customers paying the price in April. According to an official memorandum issued by Texas Public Power Association recently, the cold snap that hit Texas in late February had dramatic results. According to the report, the cold snap drove the price of electric energy higher than usual forcing a retail electric provider in the Dallas metroplex area to declare bankruptcy when it was unable to meet the $35 million financial obligation due to ERCOT (Electric Regulatory Commission of Texas). The loss created by the company’s bankruptcy has been effectively passed on to all energy providers through a fuel and regulatory adjustment charged to purchasers of electric power. According to City Finance Officer Lisa Remini, the costs associated with the circumstances could seem dramatic. The City of Brady’s regulatory charge last month was .00791 per kilowatt hour purchased. This month the regulatory charge was .02131, which effectively increased the cost of electricity by $50,000 compared to last month. Electric utility customers will see this cost passed on to them in the PCRF (Power Cost Recovery Factor) charge calculated for the month of April. The PCRF is a charge or refund to the customer that reflects either additional charges or savings passed on to the retail energy provider (City of Brady) by the wholesaler (City Public Services) due to trailing price fluctuations in the energy market. These costs are passed on to the end user to maintain the profit structure calculated in the City of Brady’s current electric rate. The calculation of these fees do not result in any additional profits.

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