Cherryland Electric Co-op (CEC) is returning a record-setting $4.2 million in capital credits to it members, effective on their October 2014 billings.
Margins earned are allocated to individual co-op members annually in proportion to the amount of kilowatt-hours consumed during that year.
In addition, CEC’s financial situation allowed them to eliminate their Power Supply Cost Recovery (PSCR) for September and October. “We will continue to evaluate this on a monthly basis, but this could result in an additional savings of almost $1 million to our members!” says Tony Anderson, Cherryland’s general manager.
The PSCR is a mechanism commonly employed by utilities to make short-term power supply pricing adjustments. Like other electric co-ops, each year Cherryland balances actual power supply costs against the power supply base rate charge embedded in its retail rates. Depending on whether actual power supply costs exceed or fall below the power supply charge, Cherryland passes the additional cost or savings to its members in a billing item labeled “PSCR Adjustment”.