Submitted By: Marie Brooks
Department: Electric Utility
FORMAL TITLE:
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Power Cost Adjustment Report - September 2026
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Operational Excellence
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 annual over- or under-collections. While the PCA can be adjusted monthly, recent practice has been to make minimal adjustments to keep customer rates stable. As requested by the City Council, the attached monthly report shows the projected PCA over- or under-collection.
On October 14, 2026, staff participated in a rate call with the Florida Municipal Power Agency (FMPA). Based on the rates and sales projections at that time, staff projected an under-collection of $10,005,487 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 September 30, 2026, the reserve is funded at approximately 20 percent of projected power costs and complies with policy requirements.