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Important information on Fuel Adjustment Clause/Environmental Surcharge

Why is my bill higher this month?

Electric bills around Kentucky and other parts of the US have been higher recently. There are several reasons this is the case.  During winter months, members typically see higher electricity bills due to the energy needed to keep your home comfortable when outside temperatures drop. The month of January had 29 days with a daily low temperature at or below freezing, so home heating systems had to work harder to keep homes heated. January 2022 Daily Temperatures

In addition to this normal increase in usage, there was a significant increase in the Fuel Adjustment Clause (FAC) and Environmental Surcharge (ES). These two charges are not controlled by Inter-County Energy and Inter-County does not receive the money from these charges. Both the FAC and ES are pass-through charges from our power provider, East Kentucky Power Cooperative.

The fuel adjustment clause (or FAC) recovers a portion of the cost of coal and natural gas that is needed to operate East Kentucky’s power plants. When the cost of coal and natural gas increase month to month, as they did from December to January, the fuel adjustment also increases. So, when the price of coal and natural gas is lower, the fuel adjustment can be a credit. When their cost is higher, like it was for January, it can become a charge. 

Click to find more information about the Fuel Adjustment Clause and Environmental Surcharge

Statement from Kentucky Attorney General Daniel Cameron on the increase of utility bills

 

WHAT IS THE FUEL ADJUSTMENT CLAUSE AND WHY HAS IT CHANGED SO MUCH?

  • A per kWh charge is figured into the base rate EKPC charges Inter-County Energy for power. The FAC is figured monthly by EKPC based on the actual cost of fuel. The FAC can either be a credit if that cost is below the base rate kWh charge, or a charge if the cost is above the base rate kWh charge.

Graphical user interface

Description automatically generated

The FAC goes directly to East KY as our power supplier. Inter-County Energy does not keep the money from that charge.

The FAC on my bill has been a credit, now it’s a charge – why?

  • The FAC can be a credit or a charge, it has been a credit since February of 2021
  • The cost of fuel including coal and natural gas has risen significantly (natural gas prices are as much as 3.5 times higher) and this directly impacts the FAC.
  • The FAC changes monthly due to the cost of fuel and the amount of energy used. Colder and hotter months will see more energy use (and, therefore, a higher FAC)

 

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  • Saving Energy
    • Usage Calculators
    • HDD/CDD and Daily Temperatures
    • DSM/Energy Efficiency
      • Energy Savings Home Tour
      • Energy Conservation
      • Together We Save
      • Simple Energy Tips
    • Demand Load Control
    • HVAC Contractors
    • Troubleshooting a High Bill
    • Energy Star Manufactured Home Program
  • Residential
    • Fuel Adjustment Charge and Environmental Surcharge
    • Cooperative Services
    • Accessing Your Member Account
    • Co-op Connections
    • Field Inventory by GIS Landmark/ Utility Mapping Services
    • Apply for Service
      • Service Requirements
      • Electrical Inspectors
      • FAQ's About Electrical Service
    • Capital Credits
    • Member Handbook
    • Kentucky Living
    • Mobile Apps
  • My Cooperative
    • Our History
    • Member Control
    • Cooperative Principles
    • Board of Directors
    • Senior Management
    • Member Resources
      • Board Meeting Calendar
      • Board Meeting Summary
      • Bylaws and Articles of Incorporation
      • Statement of Non-Discrimination
      • Customer Bill of Rights
    • Energy Rates/Net-Metering/Current PSC Approved Rates
    • FAQ's & Resources
      • Resources
    • Inter-County Energy Documents
      • Member Handbook
      • Member Education and Communications Plan
      • Red Flag Rules
      • Safety Statement
    • Service Territory
    • Annual Meeting
  • Safety/Community
    • Economic Development
      • Diageo builds First Carbon-neutral distillery in US
      • Economic Development & Drones
    • ROW/Vegetation Mngmt
    • COVID-19
    • My Business
      • Audit Services
      • Reduce Your Load
      • TSE Business Energy Advisor
    • Safety
      • Outages/Map
      • Storm Center
      • Safety Awareness
    • Youth
      • Scholarships
      • WYT 2022
      • Educational Programs
      • Electricity for Kids
    • Product Scams
    • ID Theft
  • EVs and Renewables
    • Electric Vehicle Calculator
    • Cooperative Solar
    • Solar 101
    • Net Metering Information
    • EnviroWatts
    • Landfill Power Plants
  • Contact Us
    • Career Opportunities