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Temporary Surcharge On Electric Bills Ending Early

A temporary increase in electric bills that began in July 2014 is set to end more than six months early.
The “fuel and power cost recovery factor” adjustment (labeled “F&PCRF Adjustment” on utility bills) added $0.004 per kilowatt-hour (kWh) to utility bills to cover the unexpectedly high wholesale electric prices caused by the frigid winter of 2014. The additional charge added about $4 per month to the average residential customer’s bill and was set to continue through the summer of 2016.
However, the San Marcos Electric Utility was able to generate sufficient revenue to pay off the shortfall earlier than forecasted. The F&PCRF Adjustment will end in the November billing cycle.
Three factors led to the early termination of the surcharge:
  • The Lower Colorado River Authority, which provides wholesale power to San Marcos, committed to use some reserved funds to reduce the amount owed by each wholesale customer.
  • The power purchased for the current fiscal year was both less expensive and had less volatile pricing, allowing LCRA to repurpose amounts that were over-recovered to be used to defray the previous year’s shortfall.
  • San Marcos Electric Utility consumption has been higher than projected, and as a result the City has generated sufficient revenue through the surcharge to pay the City’s portion of the shortfall sooner than forecasted.
For more information, contact the City of San Marcos Utility Customer Services at 512.393.8383.
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