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GARLAND
CITY COUNCIL ITEM SUMMARY SHEET

Work Session Item 4.e.

City Council Work Session Agenda

Meeting Date:

12/04/2023

Item Title: GP&L Recovery Adjustment Factor

Submitted By:

Darrell Cline

Summary of Request/Problem

This will be a verbal briefing related to the increase of Garland Power & Light’s Recovery Adjustment Factor (RAF). The RAF is a charge per kWh that provides for the recovery of GP&L’s revenue requirements not recovered by customer, demand, or energy charges. The RAF may be adjusted on a monthly basis by the GP&L Managing Director.

ERCOT has recently increased the cost of power by how it operates the grid and by implementing new programs. These changes have significantly increased costs for ERCOT market participants, such as GP&L. To offset these costs, GP&L adjusted the Recovery Adjustment Factor (RAF) component of its electric rate with a 1.5 cent per kilowatt hour (kWh) increase effective Dec. 1, 2023.

ERCOT’s additional costs are being passed onto electric consumers. However, GP&L’s increase is significantly less thanks to its diverse portfolio of power generation resources.

Recommendation/Action Requested and Justification

This is an oral briefing for information purposes only.

Attachments

GP&L Recovery Adjustment Factor Presentation