We understand our members have been feeling the impact of rising inflation in our economy.
While our rates have remained steady, energy bills are coming with an elevated price. There are many factors contributing to the increase: abnormal weather, supply chain issues resulting from a two-year global pandemic, and more significant for our industry, the global rising price of natural gas.
We use a variety of fuel sources in our power generation, but natural gas plays a large part. Over the last year, natural gas prices have risen to their highest levels in over 13 years. In fact, they doubled the first six months of this year. Unfortunately, these increased natural gas prices are elevating energy bills for Kentuckians.
While our fleet of power generators are managed with the utmost fiscal responsibility by East Kentucky Power Cooperative, the Fuel Adjustment Clause (FAC) is where the fluctuation of fuel cost (over/under what is included in the actual kWh rate) is passed through to members. This is a separate charge on your bill and is tied directly to the amount of energy you use. As a cooperative member, you purchase your power at our cost, so the FAC is the exact amount we pay, and we do not receive a profit.
Unfortunately, we anticipate the upward trend for natural gas pricing to continue. While we can’t control fuel prices, we can help minimize the impact for our members through various programs we offer.
Free, online energy assessments are available to help members understand where their energy goes and how they can save. And you can talk to one of our highly trained energy advisors for advice. We also offer levelized billing—an option that removes the spikes and allows members to have a more consistent, budget-friendly monthly bill. For a complete list of ways we can help, visit the programs tab at bgenergy.com.
Our cooperative is no stranger to challenges. We’ve been in business since 1937 and have seen many ups and downs in both our country and our industry. However, we have overcome each one, and this time of elevated inflation will be no different. We will continue to be here as your trusted source for energy and information—just as we have for the last 85 years.