CASE NO. 9505 (1)
In the matter of the continuing investigation of the Electric Fuel and Purchased Power Cost Adjustment Charges of the Hagerstown Light Department.
Hearing Examiner’s Notice of Hearing:
A Hearing in the above-entitled matter is herby set in the Maryland Public Service Commission’s 19th Floor Hearing Room, William Donald Schaefer Tower, 6 St. Paul Street, Baltimore, Maryland on Tuesday, March 26, 2019, beginning at 11:00 a.m.
Purchase Power Adjustment
The City purchases all of its electricity requirements on a monthly basis at wholesale prices from a wholesale energy supplier and passes the cost to City customers without any profit or mark-up.
Costs often fluctuate due to varying usage patterns and changing weather conditions.
The Maryland Public Service Commission (PSC) grants the City authority to recover the full amount of the cost variances through the Purchased Power Adjustment (PPA) clause, itemized as a separate line item on each customer bill.
The PPA rate is adjusted monthly to reflect the current amount paid by the City for power supply. The City is physically audited each year by a representative of the MD PSC to verify the correctness of the PPA.