NOTICE TO OUR CUSTOMERS
NOTICE TO OUR CUSTOMERS
factor for each connection point is:
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The Puerto Rico Electric Power Authority (PREPA) announces in accordance with the authority
granted under Public Law No. 83 of May 2, 1941, as amended, the Puerto Rico Electric Power
Authority Act, and as provided in Public Law No. 170 of August 12, 1988, as amended, the Uniform
Administrative Procedure Act, Public Law No. 21 of May 31, 1985, as amended, the Uniform Rate
October 5, 2012, in order to allow the renewable energy and natural gas costs to be considered,
will temporarily modify its Adjustment Clause.
The actual Adjustment Clause is as follows:
ADJUSTMENT CLAUSE
The adjustment charge shall be the sum of the charges due to the fuel purchase and the power
purchase charge. The purchase fuel charge is the product of the customer consumption (kWh)
and the corresponding fuel purchase factor (“FCC”) by service voltage, in accordance to the Fuel
Purchase Clause. Similarly, the purchase power charge is the product of the customer consumption
(kWh) and the corresponding factor of purchase power (“FCE”) by service voltage, in accordance to
the Purchase Power Clause.
A. Fuel Purchase Clause
The formula to calculate the fuel purchase factors is:
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EFFECTIVE DATE: June 5, 2000
PROPOSED AMENDMENT
The proposed temporary amendment in the Fuel Purchase Clause and the Energy Purchase
Clause of the Adjustment Clause, must include the charges for the use of renewable energy
Adjustment Clause
The adjustment charge shall be the sum of the charges of the fuel and the power purchases.
The fuel purchase charge is the product of the customer consumption (kWh) and the
corresponding fuel purchase factor (FCC) by service voltage, in accordance to the Fuel
Purchase Clause. Similarly, the purchase power charge is the product of the customer
consumption (kWh) and the corresponding purchase power factor (FCE) by service voltage,
in accordance to the Purchase Power Clause.
or credits, the Fuel Purchase Factor FCEGRS112 and the Power Purchase Factor FCEGRS112
will be applied.
The factor for the customers that are billed bimonthly and served at a secondary distribution
voltage will be an average between the monthly purchase fuel factor corresponding to the billing
month and the factor corresponding to the previous month.
$/BBL
Fuel cost applicable to the corresponding billing period. It is an average between the estimated fuel
cost for the billing month and the historical fuel cost for the second month previous to the billing
month, based on the fuel price for PREPA of a fuel oil barrel of 42 US gallons, plus transportation,
storage, handling, and any other required expense before using it in PREPA’s generating units.
Estimated BBLS
Estimated barrels of fuel to be consumed by PREPA generating units during the billing month.
Initially, the percent of the total generation of the system corresponding to PREPA and the
corresponding percent of Power Purchase is determined. Then, the percent of net generation
from PREPA is multiplied by the generation needed to meet the customer usage of the GRS-
Then, PREPA will compare the kWhAEE-112 with the generation of natural gas units of PREPA
and will select one of these three possible scenarios:
Case A:
If the generation of units from natural gas from PREPA equals the kWhAEE-112, it is presumed
AdjustmentC ($)
from the customers through the application of the Fuel Purchase Clause, excluding the portion
that corresponds to the contributions in lieu of taxes.
0.89 Factor
municipalities.
Total Estimated Net Generation
Net generation that PREPA estimates it will produce and purchase (excluding the energy used by
the auxiliary equipment) for the billing month.
Ei Factor
Case B:
If the generation of units from natural gas from PREPA is greater than the kWhAEE-112, the
necessary supply will be used to supply the kWhAEE-112 and the remaining generation will
Case C:
If the generation of natural gas units from PREPA is less than the kWhAEE-112, the total
generation of these units will be used to supply part of the kWhAEE-112, and the needed kWh
will be met with some of the remaining generation of other generation units from PREPA.
The percent of net generation corresponding to the Power Purchase will be multiplied by the
generation needed to meet the GRS-112 customer consumption, to obtain the kilowatt hours
that will be supplied from the power purchase (kWhCE-112).
factor for each connection point is:
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B. Purchase Power Clause
The formula to calculate the factors of purchase power purchase is:
The sum of the kWhAEE-112 and kWhCE-112 will be the kilowatt-hours required to meet the
total consumption of the GRS-112 customers.
The needed kilowatt hours will be supplied from the power purchase.
A. Fuel Purchase Clause Proposal
The proposed formula for Fuel Purchasing Clause proposal is as follows:
The formulas for calculating the adjustment factors for purchases of fuel are as follows:
The factor for the customers that are billed bimonthly and served at a secondary distribution
voltage will be an average between the monthly purchase power factor corresponding to the
billing month and the factor corresponding to the previous month.
Case a:
When the generation of units of natural gas from PREPA equals kWhAEE-112, it is presumed
Estimated Cost of Purchase Power ($)
It is the amount of money that PREPA will pay in the billing month to the large power producers
for purchase power.
AdjustmentCE ($)
customers through the application Purchase Power Clause, excluding the portion that corresponds
to the contributions in lieu of taxes.
0.89 Factor
municipalities.
Total Estimated Net Generation
Net generation that PREPA estimates it will produce and purchase (excluding the energy used by
the auxiliary equipment) for the billing month.
Ei Factor
$/BBLTotal-CS5&6
Price of fuel in generating plants of PREPA, excluding the units from natural gas. This is the
cost of fuel in the tanks of inventory at the end of the month preceding the billing month. This
cost is equivalent to the price for a barrel of 42 gallons (U.S.) of fuel, plus the cost of cartage,
storage, handling and any other costs prior to its use by generating stations from PREPA.
BBLSTotal-CS5&6
Estimated number of barrels of fuel consumed by generating stations from PREPA during
the billing month, excluding PREPA’S units using natural gas.
1
$/BBLCS5&6
Fuel price of PREPA’S units using natural gas. This is the cost of fuel Bunker C # 6 in the tanks of
these units and the cost of natural gas used at the end of the month preceding the billing month.
This cost is equivalent to the price for a barrel 42 gallons (U.S.) of fuel, plus the cost of cartage,
storage, handling and any other costs prior to its use by generating stations from PREPA.
Factor Ei
applicable to each connection point is:
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Et
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BBLSCS5&6
Estimated number of barrels of natural gas and Bunker C # 6 that PREPA’S units using natural gas
will consume during the billing month.
Case b:
When the generation of PREPA’S units using natural gas is greater than the kWhAEE-112,
the necessary generation will be used to supply the kWhAEE-112 and the remaining of the
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B. Proposed Power Purchasing Clause
The formula for calculating the adjustment factors for purchases of energy becomes:
Estimated Cost of Energy Purchased ($)
Estimated amount of money that the Authority will pay to large scale electric energy producers
and renewable energy producers for the concept of energy purchases for the billing month.
RECs Estimated Cost Costo ($)
Estimated amount of money that PREPA will pay for the costs associated with the Renewable Energy
and Renewable and Alternative Energy Public Policy Act of July 19, 2010. This act states that PREPA
A REC represents the equivalent of one (1) megawatt hour (MWh) of electricity generated by a
BBLSCS5&6NO112
Estimated share of barrels equal to the amount of natural gas and Bunker C # 6 to be used by
AdjustmentCENO112 ($)
during the billing period.
money recovered by these customers through the Energy Purchasing Clause (FCE), excluding the
portion corresponding to the contributions in lieu of taxes. Both quantities belong to two months
before the billing month.
BBLSCS5&6112
Estimated share of barrels equal to the amount of natural gas and Bunker C # 6 to be used by
during the billing period.
Case c:
When the generation of PREPA’S natural gas units is less than the kWhAEE-112, the total generation
of these units will be used to cover the kWhAEE-112, and those kWh needed will be supplied by
the remaining PREPA generating units.
AdjustmentCEGRS112 ($)
), and the money recovered by these
GRS-112
customers through of the Power Purchasing Clause, excluding the portion corresponding to the
contributions in lieu of taxes. Both quantities belong to two months before the billing month.
Estimated Net Generation Energy Purchase (kWh)
Estimated net generation of large scale electric energy producers and the renewable energy
producers for the billing month.
Estimated Total Net Generation (kWh)
Estimated total net generation produced and purchased by PREPA (excluding the energy used by
the auxiliary equipment of the generating plants) corresponding to the billing month.
Estimated Total Net Generation GRS-112 (kWh)
Estimated total net generation produced and purchased by PREPA (excluding the energy used by
112 rate for the billing month.
BBLS(Total-CS5&6)NO112
Estimated share of barrels of fuel that the generating stations of PREPA will consume during the
billing month, excluding PREPA’S natural gas units to supply customers except those covered
BBLS(Total-CS5&6)112
Estimated share of barrels of fuel that the generating stations of PREPA will consume during the
billing month, excluding PREPA’S natural gas units to supply customers covered under the GRS
AjusteCNo112 ($)
Factor Ei
applicable to each connection point is:
Eds
Edp
Et
EBG
-
Factor 0.89
municipalities.
the Fuel Purchasing Clause (FCC). This excludes the portion corresponding to the contributions in
lieu of taxes. Both quantities belong to two months before the billing month.
AjusteCGRS112 ($)
Fuel Purchasing Clause (FCCGRS112). This excludes the portion corresponding to the contributions in
lieu of taxes. Both quantities belong to two months before the billing month.
Stabilizing amount ($)
amendment to consider or not making them permanent in accordance to Act 21as amended and
Act 170, as amended.
This notice will be available to the public at the following Internet address: www.aeepr.com
under Noticias/Avisos.
APPROVED BY: COMISION ESTATAL DE ELECCIONES NUM: CEE-SA-12-12804
subsidy, except credit for consumption of electrical equipment to conserve life, to compensate for
increases in fuel prices.
GRS112 Consumption (kWh)
Factor 0.89
municipalities.
Estimated Total Net Generation (kWh)
Estimated total net generation produced and purchased by PREPA (excluding the Energy used by
the auxiliary equipment of the generating plants) corresponding to the billing month.
Estimated Total Net Generation GRS-112 (kWh)
Estimated total net generation produced and purchased by PREPA (excluding the energy used by
112 rate for the billing month.
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