Answers about the Fuel Adjustment Clause
Q. What is the fuel adjustment clause?
A. It recovers a portion of the cost of coal and natural gas needed to run power plants, and costs to buy power from other utilities.
Q. Does the fuel adjustment change with the price of gas?
A. It has nothing to do with the cost of gasoline. The fuel charge recovers a portion of the costs incurred by our power supplier for coal and natural gas to operate its electric plants, and their costs to buy power from other utilities.
Q. Why does it go up and down so much?
A. Costs for coal, gas and purchased power vary, along with weather. Changes in weather will dramatically change the amount of the fuel needed to generate power and the fuel charge.
Q. Does anyone check to make sure the fuel charge is accurate?
A. Every six months, state regulators review our power supplier’s fuel adjustment clause calculations to make sure the charges are correct.
Q. What else explains the differences I see compared to months last year?
A. Check electric usage in the months being compared. Because you typically use more electricity in the winter and summer than in the fall or spring, your fuel charge will generally be higher around the hottest and coldest months.
Q. Who decides what the charges are?
A. Our power supplier uses a formula approved by state regulators. Every penny goes directly to our power supplier.
Q. Is there anything I can do?
A. Absolutely. Most homes have leaks in duct work and lots of places where outside air gets in. Fixing those problems can significantly reduce energy consumption. By being more energy efficient and lowering electric use, you can help to reduce the fuel charge.
Q. Can the co-op help me with that?
A. We can help members through levelized billing, bill payment plans and with advice on ways to better manage energy use.