News & Media

What is the Power Supply Adjustment (PSA)?

November 27, 2023


Since 2005, the PSA has been a charge or credit applied to customer bills based on kWh energy usage. The PSA is used to offset the variances that occur over time between the base rate and actual power supply costs. It can vary between a one-cent per kWh charge and a half-cent per kWh credit. The PSA is reviewed and can be adjusted twice a year to be effective on June 1st and December 1st.

The PSA is a per kWh charge or credit, which takes into account variances in the District’s net power supply cost compared to the amount that is in the base rates. The power supply costs include such items as purchased electricity and fuel.  When calculated, the PSA charge or credit takes into account the previous 6 months power supply expenses and the forward 12 month projection of power supply costs. When those calculations show an increase, the PSA can increase, when they show a decrease, the PSA can decrease. However, the PSA cannot go above one-cent per kWh charge or below a half-cent per kWh credit, regardless of the change in power supply costs.

The PSA is intended to vary and account for changes in power supply costs. It is not an increase in our base rates. Unlike a base rate increase, the PSA is not fixed and will be adjusted down, should power supply costs decrease.