CCU Commission Approves Billing Credit
The Clarksville Connected Utilities (CCU) Commission approved a power cost adjustment (PCA) credit for customer bills from June through September during its monthly meeting Monday, May 18, after discovering customers had been charged incorrect PCA amounts for the past 16 months because of a reporting error.
A PCA is a charge on electric bills utilities use to reflect changes in the cost of purchasing wholesale electricity. Utilities buy electricity from power suppliers at costs that can rise or fall from month to month based on fuel prices, demand, weather and other market conditions. Rather than changing the base electric rate each time those costs change, utilities use the PCA to add a charge or credit to customer bills reflecting the actual cost of power purchased during a given period.
CCU Interim General Manager Eric Heinrichs told Commissioners the issue was discovered while staff prepared an annual Electric Information Administration (EIA) report. During that process, electric system losses — the difference between the amount of electricity CCU purchased and the amount billed to customers — appeared to be more than double previous years, prompting an internal review.
The investigation found a flaw in a billing-system export report used to calculate the monthly PCA charges. Because the reporting error affected the data used in those calculations, customers were charged incorrect PCA amounts over approximately 16 months. Heinrichs said the discrepancy was small enough each month to avoid detection during regular reviews. After accumulating over 16 months, however, the issue became noticeable in the annual report.
Commissioners approved the PCA credit to correct the billing discrepancy by applying credits to customer bills from June through September.
Data Center
Heinrichs’ report also addressed the proposed Serverfarm data center project, which he described as “a massive undertaking” moving faster than anticipated.
He wrote CCU is doing everything it can to ensure the project is “a win-win for our community and all parties involved in its undertaking.” He stated utility officials also believe the project ultimately will benefit the system.
Other Matters
Matters also addressed in Heinrichs’ report and accepted as information by the Commission included:
–Plans were outlined for a proposed third-party cost-of-service study to evaluate the condition of CCU’s infrastructure and determine whether current rates and financial practices remain sustainable. According to the report, the study would provide “an objective reference for the health of our facilities and infrastructure and the viability of our current rates and financial practices.”
The report also stated staff plans to work with state resources commonly used by small rural water departments and build on research already begun by Porsha Russell, pollution control facility manager, in hopes of reducing the overall cost of the study. No action was taken.
–Heinrichs noted major equipment at the wastewater treatment plant and several sewer lift stations are due for overhaul or replacement. June will be spent researching the system and developing recommendations for future discussion with Commissioners.
–Commissioners also were informed staff is reviewing the condition of work vehicles and equipment. According to the report, some equipment may be kept in service longer than is practical or cost-effective.
Financial
The Commission’s agenda included routine financial and departmental reports, which were accepted as information without action.
Finance Officer Dana Frizzell presented the March financial report. Compared to March 2025, operating revenue increased 8.64%, with gains in electric, water, and sewer and a loss in broadband services. Power purchased rose 13.78%, other direct expenses decreased 3.77%, and general expenses increased 20.1%.
Total income for the month decreased by $34,907 with departmental results as follows:
–electric: -$91,929
–water: $54,811
–sewer: $13,973
–broadband: -$11,762
Total disbursements for April were $2,894,448.57.
Commissioners Lashainea Pollander, Jason Shook and Blake Neumeier were present, with Freeman Wish and Ethan Powell absent.
The next regular meeting of the CCU Commission is scheduled for June 22 at 4:30 p.m. at the CCU business office, 400 W. Main St. All meetings are open to the public.
Read this story and others in the May 27 issue of The Graphic, available online and at businesses throughout Franklin and Johnson counties. Subscribe or donate here to support more hometown journalism.
