For members on the RRO, changes in the monthly power pool price will directly impact you. Effective July 2006, the Department of Energy requires all RRO providers to publish a new RRO which must include 20% of the rate calculated to reflect the monthly volatility in Power Pool prices. The Power Pool price changes every hour, and as such we have added a chart to the front page of our web site to help our members appreciate and watch the highs and lows of changes in the market.

 

We will not be allowed to offer long term price stability in the RRO, as we have done in the past. As such, the new policy will result in consumers on the RRO be faced with the cost of electricity fluctuating monthly. Each year the variable portion of the rate will increase by 20%. By 2010, the monthly RRO will be totally subject to the volatility in monthly market demand for electricity.