Beginning in March 2022, Maquoketa Municipal Electric Utility (MMEU) will change billing dates for its customers. This billing date change will allow the utility to better match electric sales with electric purchases, which in turn will help minimize the changes in customers’ monthly purchased power adjustment (PPA) charges.
What is the PPA?
The Purchased Power Adjustment (PPA) allows MMEU to make monthly adjustments to customer bills when costs for providing power are above or below the average estimated power cost. In the event that the wholesale energy was less expensive than forecasted the PPA allows the savings to be passed back to the customer and results in lower bills. If the energy is more expensive than forecasted, the customer’s bill is higher.
Previous Billing Procedure
MMEU receives the wholesale bill at the beginning of the month, reflecting sales from the previous month’s purchases. Customer meters used to be read on the 20th of each month, bills were calculated and mailed out at the beginning of the next month, and were due by the 20th of that month. This time lag created more fluctuations in customers’ bills because the PPA was not fully applied to the time it was incurred.
New Billing Procedure
In order to better serve customers and align electric sales with electric purchases, MMEU will adjust the billing period. Customer meters will be read at the end of each month, with bills mailed out by the 10th and due by the 30th of the same month. Going forward, all future bills will be based on a calendar month basis.
The planned shift of the due date to the end of the month will change the date of ACH payments. Currently, the ACH transaction occurs on or about the 20th of each month. Beginning March 30, 2022, ACH transactions will occur on or around the 30th of each month.
Benefits of the Change
Customers’ bills will reflect usage for a full calendar month. This will align bills with the same time period MMEU is billed for wholesale energy purchases.
If you have any questions or need additional information, please contact us at 563-652-6891.