Fuel Adjustment Clause
The fuel adjustment clause 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 for Grayson
RECC’s trucks. 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
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 charge.
Q. Does anyone check to make sure the fuel charge
A. Every six months, state regulators review our power
supplier’s fuel adjustment clause calculations to make sure
the charges are in compliance with state regulations.
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.
State regulators make sure that only proper expenses are
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 offer efficiency programs, provide free energy audits
and provide free energy tips. Go to www.togetherwesaveky.com
to learn more.