Over the last year, Blue Grass Energy members, as well as other members of East Kentucky Power Cooperative (EKPC), have enjoyed a credit on their monthly utility bills. Known as the fuel adjustment clause (FAC), this bill item tries to recover a portion of the cost of coal and natural gas that EKPC uses to run their power plants, as well as the cost to purchase power.
For most of 2021, members have enjoyed the fuel adjustment clause as a credit on their bill instead of a charge, reflecting the low cost of power and fuel. However, due to the rise in the demand for natural gas and coal, the cost to purchase fuel and power has nearly doubled from this time last year. That means the bill credit we’ve all enjoyed will, for the time being, transition to a charge.
So, with the fuel adjustment clause going back to a charge on monthly bills, it’s important to note:
- Since the fuel adjustment clause deals with the cost to purchase fuel and power, the money collected does not go to Blue Grass Energy. That’s because we simply deliver electricity to our members instead of generating it.
- Also, Blue Grass Energy doesn’t control how high or low the fuel adjustment clause goes.
We know no one likes an added charge on their bill, including your fellow members who work here at Blue Grass Energy. But, if you have any questions or concerns about your bill, please give us a call.
We’re always here to help.