Purchase of Fuel and Purchase of Energy

Adjustment by Voltage Level factors, Information on Renewable Energy Projects and Cogenerators

The rates of the Electric Power Authority included in the book Rates for the Electricity Service, have the following components:


Monthly fixed charge

The purpose of this charge is to recover those expenses that are independent of the consumption and the energy demand of the clients, such as: meter reading, billing, administrative expenses, customer services and expenses related to the service and the meter.

Monthly Charge for Energy and Monthly Charge for Demand *

Through these charges we recover the expenses incurred in the activities necessary to generate, transmit and distribute the electric power that is served to our customers.

* The Demand Charge applies to primary distribution and transmission voltage rates.

Adjustment Clause

Fee provision that consists of the charges for Fuel Purchase and Energy Purchase. These charges are intended to distribute to customers the fuel costs used in the generating plants of the Authority and the purchase of energy from large-scale producers and renewable energy projects, as well as the costs associated with the Renewable Energy Certificates ( CERs). The Authority acquires the CERs according to the provisions of Law 82-2010, which requires the Authority to comply with a Renewable Energy Portfolio by submitting CERs to the Renewable Energy Commission. The Adjustment Clause contains the formulas with which the adjustment factors for fuel purchase (FCC) and the adjustment factors for energy purchase (FCE) are calculated for the different voltage levels. This Clause is included in the last section of the book Rates for Electricity Service.

In summary, our customer's bill consists of the Basic Rate and the Adjustment Clause. The prices to calculate the Basic Rate vary according to the applicable rate. This will depend, mainly, on the type of customer, voltage level and the requirements that customers must comply with when requesting them. The process to calculate monthly adjustment factors requires the collection and analysis of data related to the purchase and handling of fuel and the purchase of energy.

Purchase of Fuel and Purchase of Energy

To estimate the price per barrel ($ / BBL) to be used in the formula, factors are considered, such as: the type of fuel and its price in the market, and the clearance of generating units. In this dispatch, the efficiency, characteristics and fuel price of each generating unit are taken into account, taking into account limiting conditions that may have any of the generating units. From it, we obtain the Estimated Total Net Generation and the number of fuel barrels that are part of the formula (BBLS estimates). In the calculation of the Estimated Total Net Generation, the projections of the dispatch of the generating units of the AEE, the cogenerators and the renewable energy projects are used.

Because an estimate of fuel expense is used, an adjustment (AdjustmentC) is required to be included in this formula, which allows the difference between the actual cost of the fuel consumed two months before the month of billing to be returned to or recovered from customers. the Authority and the money recovered through the Fuel Purchase Clause.

In the formula, an efficiency factor (Ei) is applied for the different voltage levels. In this way we calculate an adjustment factor with each efficiency, which will apply to customers according to their service voltage. The voltage levels are: generation bar, transmission, primary distribution and secondary distribution.

The factor 0.89 is used to include the effect of the Contribution instead of Taxes. The Law of the Authority provides for the separation of 11% of gross sales revenues to compensate for the exemption of taxes. The result is used to cover the subsidies provided by law, the rural electrification program, the obligations of the irrigation system, the payment to the municipalities and to provide internal funds for the financing of the permanent improvement program.

The Estimated Cost of the Purchased Energy includes the estimated payment that the Authority must make for the purchase of energy from the cogenerators, using the prices established in the contracts. In addition, the energy and costs associated with CERs are estimated, which must be purchased from renewable energy producers in commercial operation. These estimates are incorporated into the formula to calculate the energy purchase factors. Because these costs are also estimated for purposes of calculating the formula, like the purchase of fuel, an adjustment is included (AjusteCE) to return to or recover from customers the difference between the actual costs of the purchased energy, two months before the month of billing, and the money recovered through the Energy Clause.

The factors of purchase of fuel (FCC) and purchase of energy (FCE) are multiplied by the consumption in kilowatt-hour (kWh) of the client to assign the amount that he has to pay for these charges.

Factores de Ajuste de Combustible y Compra de Energía