Higher than Normal Energy Use

February 7th, 2018 by admin

Higher than Normal Energy Use


The start of 2018 has resulted in BMU customers raising questions about their utility bills. With the average temperature in December being around 35 degrees and the average temperature in January being around 31 degrees, the unusually cold weather has resulted in higher than normal utility bills.

BMU is urging customers to be aware of their energy consumption. High energy consumption results in higher utility bills.

Weather affects utility bills. Your heating system works harder to maintain your indoor temperature during the winter months.

Some ways help stay warm and keeping cost down:

  • Open drapes, blinds and curtains during the day to allow the sunlight to enter and warm your home. Close them at night to prevent the chill from the cold windows.
  • Weatherize your home by using weather strips around doors and windows that may leak air.
  • Adjust your thermostat down two degrees in the winter.
  • Make sure to replace furnace filters every 30 days.
  • Add insulation if necessary in your attic or crawl spaces in your home.
  • Turn off lights when not in use.
  • Wash clothes in cold water.
  • Add blankets to your bed.

Due to this higher energy usage there is a significant increase in electric charges billed in February 2018 compared to February 2017. The electric charges include a (service charge + energy charge + PCA).

Other factors for the increase is the fluctuating purchased power cost, also known as the PCA.

What is the Power Cost Adjustment (PCA)?

The PCA, a rate mechanism, electric utilities use to recover fluctuating purchased power costs. BMU currently purchases electricity from Kentucky Utilities at wholesale rates which are adjusted annually and fluctuate monthly with changes in fuel cost. The PCA enables BMU to recover these fluctuating wholesale power costs as they occur without overcharging or undercharging customers through fixed retail rates.

How is the PCA calculated?

The PCA is a fixed charge for kilowatt hour (kWh). The PCA total will depend on the number of kWh’s the customer uses during each billing period. BMU reviews and adjusts the PCA calculation on a monthly basis. The PCA calculation is determined by reviewing the difference between the amount BMU actually pays KU for wholesale power and the amount BMU collects through its monthly electric rates to the customer. The PCA is then increased or decreased to reconcile the amount that BMU under collects or over collects.

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