Starting in November you’ll notice a new charge on your monthly electric bill — a line item titled: PSCR Adjustment.

We knew you might have some questions about it, so here are some answers.

If you don’t see your question or answer listed here, please call our office at (231) 486-9200.

What is PSCR?

PSCR stands for power supply cost recovery. It’s an item on your monthly bill that helps us pay for wholesale power and fuel, allowing the cooperative to stay on budget.

How much will my bill go up?

The increase is $0.008 per kilowatt-hour. For an average member using 750 kWh per month, that equals about a $6.00 increase.

Does Cherryland profit from this PSCR Adjustment?

No, we are a not-for-profit utility. The PSCR is a direct pass through of power supply costs that allows the co-op to manage its budget. 70 cents on every dollar Cherryland spends goes directly toward power supply. That leaves just 30 cents to pay for everything else like materials, payroll, and maintaining our electric lines. The PSCR keeps the co-op from further dipping into that small portion used to meet our operating needs.

Why are we seeing this new line item now?

Over the last year, transmission costs went up more than expected. Transmission costs are $10 million over budget at Cherryland’s power supplier and that includes our share. The PSCR charge will help us make up for some of those unexpected costs.

In northern Michigan, it’s been more than 5 years since the development of a new power generation source. That means we rely on transmission lines to carry our power longer distances throughout the region. Part of the PSCR cost comes from transmission companies’ investments in maintaining and upgrading the regional grid needed to get that power to us and into your homes and businesses.

How long will the PSCR charge stick around?

You can expect to see the PSCR Adjustment on your billing statements for the foreseeable future, however it might not always reflect a charge. At times it may be $0 or even a credit. The number you see there will adjust based on the need to fund the fluctuating cost of power supply. As our power supply evolves to include more intermittent renewable energy and natural gas to back it up, we are more exposed to the volatile natural gas market. This is not unique to Cherryland or to Michigan; rather, it is a trend that is impacting our entire regional grid system.

To see the most current PSCR rate click here.

More questions?

General Manager Tony Anderson addressed the PSCR adjustment in a recent column, read it here!

Or click here to take a listen to our latest podcast discussing the current state of power supply.

Still not finding the answer to your question? Feel free to call our office at (231) 486-9200.