There are three components to the electric rate which
DMU charges our customers; the Basic (flat) Rate, Fixed Usage Rate, and
Variable Usage Rate.
The Basic Rate
is a monthly fee that is charged to help cover the cost of providing
electricity to a residence or business, regardless of whether
electricity is used or not.
The equipment throughout the city that has
been put in place to deliver electricity has a cost to maintain.
If a house or business is vacant, the
ability to deliver electricity is still present, and the service
continues to need maintenance.
The Fixed Usage Rate
is designed to create a charge to each customer based on the
amount of electricity is used.
The fixed rate is set at the end of each
year for the next year and is designed to fund all operational costs,
including the wholesale cost of energy purchased.
The Variable Usage Rate also referred
to as power cost adjustment (PCA) is designed to
account for unexpected charges to provide energy, or give DMU the avenue
to reduce the overall usage rate when DMU is able to maintain and manage
its cost each month to be lower than expected to produce electricity to
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