Title
Update on Electric Fuel Levelization Balance and Reduction of Fuel Adjustment (B)
**This item is informational.**
**Estimated Presentation Time 5 Minutes**
Explanation
With GREC remaining offline as well as continued favorable movement in the natural gas market, staff has reviewed fuel and purchased power cost projections for the remainder of FY2016. Given these circumstances, the General Manager for Utilities has directed that the Fuel Adjustment be reduced again in May 2016. The current Fuel Adjustment is $0.073 per kWh through April 2016 and will be lowered to $0.070 per kWh beginning May 2016. Staff will continue to monitor the expenses and loads to determine if any additional adjustments will be appropriate at any time in the future.
Fiscal Note
Beginning in May 2016, GRU electric customer bills will be lowered by $0.003 per kWh.
Recommendation:
Hear a brief presentation to address the revisions to the fuel costs assumptions, the impact to the Fuel Levelization and the resulting customer bill reductions.