OPALCO considering modifications to seasonal billing adjustments

In response to member concerns expressed after unexpectedly high December electric bills, OPALCO announced that it is considering changes to the way it handles its seasonal demand charges and credits.

According to Foster Hildreth, OPALCO’s general manager, the utility may modify its Energy Charge Adjustment formula so that large surcharges and credits are applied more evenly throughout the year. OPALCO Communications Director, Suzanne Olson, said that it’s also possible the utility may decide to bank credits so that they can be applied during extreme weather events in the future.

Every month, the utility includes the ECA on each member’s bill. In periods where the total cost of the energy consumed by all OPALCO members ends up lower than expected, the ECA appears on the bill as a credit. But when usage spikes, as it did during December’s unseasonably cold weather, the ECA instead becomes a surcharge.

Olson cited her own energy bill as an example of how OPALCO’s current ECA formula can make monthly charges less predictable.

“In my case, I had an ECA credit of $30 in December and a surcharge of $42 in January,” Olson explained, “This made it feel like a $72 difference on top of my [increased] usage.”

The OPALCO Board of Directors will discuss potential billing changes at its next board meeting on Thursday, Feb. 17.

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