Submitted By: Charlene Pollette
Presentation By: Doug Peebles
Department: Electric Utility
STAFF REPORT:
title
Power Cost Adjustment Report - November 2025
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The Power Cost Adjustment (PCA) rate is the mechanism by which positive and negative fluctuations in power costs are passed through to customers. Power costs and sales are reviewed monthly to project over- or under-collections for the year. While the PCA can be adjusted monthly, the recent practice has been to make minimal adjustments to maintain stable customer rates.
As requested by the City Council, a monthly report on the projected over- or under-collection of the PCA is attached.
On December 16, 2025, staff participated in a rate call with the Florida Municipal Power Agency (FMPA). Based on rate projections at that time and our sales projections, an under-collection of $854,115 is projected for the end of Fiscal Year 2025-26.
The policy sets the rate stabilization reserve funding range at 15 to 25 percent of projected fuel costs. As of November 30, 2025, the reserve is funded at approximately 22 percent of the projected power cost and is in compliance with policy requirements.