By Ally Lanasa, Staff Writer

(Feb. 4, 2021) As Berlin residents take to social media to express concerns about an increase in their electric utility bills, Town Administrator Jeff Fleetwood explained the factors that produced the recent charges.

“What is the power cost adjustment? The electric bill you receive every month lists several individual charges or line items that add up to the total amount of your bill,” Fleetwood said. “One of the items that goes up or down is the power cost adjustment, sometimes called an energy cost adjustment or a fuel cost adjustment. Since the PCA changes from month to month, it is important to realize that it is not due to a change in your electric rates, but it’s due to the changing costs of fuel to generate electricity that you use.”

Jeff Fleetwood

Fleetwood said individual consumption also affects the power cost adjustment charge. So, the more electricity a home used, the higher the power cost adjustment charge would be.

“Another thing I would add is cost of renewables has gone up and that is a major factor when you talk about the PCA,” he said.

The Berlin Mayor and Council support Senate Bill 0677 and House Bill 1392 and are providing a financial share for a lobbyist to help pass legislation to cap the Renewable Energy Portfolio Standards for the five municipal electric utilities.

The town could save more than $2 million from 2021 to 2030 if the legislation passes.

According to the town’s website, the cost of fuel to generate the town’s electricity varies.

“This variation in fuel cost can cause the cost of purchasing electricity from outside power companies to vary as well. The Power Cost Adjustment Charge (PCAC) is a calculated dollar amount per KWH to be added or deducted from the customer’s billing each month, reflecting the increase or decrease in the fuel cost of generating or purchasing power that can be passed on to the customer,” the website states. “The Maryland Public Service Commission reviews the PCAC calculation and collection on a monthly basis.”

Fleetwood added that the town’s electric consultant, Booth & Associates, also reviews the power cost adjustment charge on a monthly basis.

Fleetwood reminded electric customers that the town’s electric utility is a not-for-profit utility.

“The PCA line item on your bill passes these costs onto you,” he said. “The electric utility does not make extra revenue from this item. This is a pass-through cost.”

During the Town Council meeting on Jan. 25, Fleetwood added that Berlin is not the only electric supplier that has a power cost adjustment charge.

Councilman Jack Orris asked at the meeting if there was a way for residents to be notified of potential increases in the power cost adjustment charge to help budget for it. Finance Director Natalie Saleh replied that the rate itself varies only by a minute amount. The increase in cost was caused by the amount of kilowatts being used by the household.

She added that the December-January bill was for 35 days, a longer time period than the average bill.

Saleh and Mayor Zackery Tyndall mentioned that the town offers a budget billing program, which allows residents to pay a fixed amount each month based on previous usage and settle the difference at the end of the year.

Berlin’s Electric Department asks customers to voluntarily conserve or limit energy usage depending on the weather when customers would typically use the greatest amount of electricity.

“If anybody’s interested, that is a program that we have,” Tyndall said, adding that residents should call town hall and request the form for the program.

The town’s Tweak Our Peak program alerts customers of peak times are when Berlin Electric is purchasing wholesale power at the highest prices.

Fleetwood said with the colder weather the peak times were from 6-10 a.m. Jan. 29-31. The town’s website states that Berlin customers can save money by reducing their energy consumption during these peak periods by delaying the usage of major appliance such as dishwashers, washing machines and clothes dryers.  Other steps customers can take to lower their electric bills include delaying the use of hot water, closing window shades and adjusting thermostats down three degrees during these peak times.

In addition, the U.S. Department of Energy recommends covering drafty windows, adjusting the thermostat temperature during the day and night, sealing air leaks around utility cut-throughs for pipes and reducing heat loss from the fireplace to save energy during the fall and winter.

Energy saving tips will also be included in the February electronic newsletter, said Administrative Manager Kelsey Jensen.

“For anyone out there with a utility bill, it could be water sewer or electricity, if there’s a concern or question please dial 410-641-2770, and I will guarantee you will get personalized attention,” Fleetwood said during the Town Council meeting last week.