“At the present time the level of unaccounted for energy is totally out of control by any measure,” Georgetown said.
The “unaccounted for energy” or energy for which there is no accurate accounting, is one of the factors that directly impact the levelized energy adjustment clause, or LEAC, rate, Georgetown said.
Georgetown submitted a report to CPUC recommending for a LEAC rate change that reflects the current world fuel oil market conditions.
Like plant uses and line losses, the unaccounted for energy can be controlled by CUC, Georgetown said.
Plant uses are the internal electricity uses of CUC at power plants and other facilities for operating machinery to light the plants and adjacent grounds and to power electronic monitoring systems. Line losses are losses resulting from the physical or technical characteristics associated with CUC’s delivery system.
Georgetown said line losses are totally within the control of CUC.
It added that a utility like CUC will have about 6 to 7 percent of its power production associated with line losses.
A recent report prepared for the Department of the Interior shows that CUC’s line losses are consistent with industry norms, Georgetown said.
It reported that unaccounted energy at a utility is usually far less than 1 percent.
CUC’s unaccounted for energy level, however, is almost 11 percent, Georgetown said, adding that this means all ratepayers are paying a premium on their electric bill.
“This is a matter that should be high on the CPUC’s agenda given that if this matter is left uncorrected this inefficiency will continue to be directly passed unto customers through the LEAC rate,” Georgetown said.
The consultant recommended CPUC to consider the unaccounted for energy during its Jan. 2012 regulatory session.
Georgetown said CUC should present to the CPUC its plan of action, budget, personnel resources and time schedule to bring unaccounted for energy to a level of less than 1 percent.
