News

2/2/2009

Fuel Charge, Colder Temps Lead to Higher Bills

Jackson Enenergy electric bills usually go up and down with the weather - hot weather in summer and cold weather in the winter result in increased usage and higher bills.

Bills for January are usually high because of colder weather, but this month's bills took a double hit from the weather and a line item on the bill for the fuel adjustment charge.

"Temperatures were colder for the same time period this month when compared to last January's bills," according to Jackson Energy Director of Public Relations Karen Combs, "and as a result, our members are using about 20 to 25% more electricity than they did for the same time period last year. The average temperature for the month was only 32."

One of the days covered by bill, Combs noted the low temperature was -5, while the high that same day was only 15.

In addition to the colder weather, the fuel charge for this year's January bills was significantly higher than last year's. On the January '08 bills the fuel charge was only three-tenths of one cent, while on the January '09 bills it was 1.5¢.

"If someone had used 2500 kwh last year, the fuel charge would have been $7.50," Combs said, "but this year, it was $37.50."

The fuel charge is based on the price of fuels used to generate electricity by Jackson Energy's wholesale power supplier, East Kentucky Power. It also reflects additional power EKP may have to purchase on the open market energy grid in order to meet particularly high demand, such as extemely cold temperatures.

"All of the money collected from the fuel charge and the environmental surcharge on electric bills goes back to East Kentucky Power to cover their costs of producing power and meeting federal clean air standards," Combs said.

In fact, 70% of the money collected by Jackson Energy goes back to East Kentucky to cover power costs, fuel charges and environmental surcharges.

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