The first part is the base rate, the second part is an adjustment for wholesale power costs not included in the base rate. The PCRF identifies the amount of purchased power cost that is being passed through to them. The difference between the amounts recovered and the costs actually incurred is subject to reconciliation. Total estimated purchased power cost, including fuel, which are included in the company's base rates. An adjustment to the cost of fuel contained in the basic rates.
Some utilities use a fuel adjustment factor averaged over a twelve-month period.
An adjustment to the cost of fuel contained in the basic rates. Each utility is required to monitor the cumulative difference between its actual cost of fuel and the amount recovered through its fuel factor. The PUC establishes the current fuel factor and requires the utility to refund or surcharge its customers the difference when it exceeds a pre-determined value. Residential Service is the most widely used of all customer rates. Some Texas cooperatives calculate a franchise tax adjustment on each customer's bill for service rendered within the incorporated limits of a municipality that imposes a gross receipts tax upon the revenues received by the cooperative from its customers.