News

8/27/2009

Fuel Adjustment Roll In Shifts Costs

Jackson Energy's wholesale power supplier, East Kentucky Power, adjusted the fuel charge portion of Jackson Energy's base rate effective August 1. The roll in will shift cost from the line item fuel adjustment charge and apply it to the base rate.

Jackson Energy's base rate will increase by 1 cent, but the fuel adjustment line item cost will decrease by the same amount. The overall total amount of the bill will not increase. The change is called a roll in by the Kentucky Public Service Commission and is passed on to each of the 16 electric cooperatives served by East Kentucky Power.

Jackson Energy members will be paying the same amount of money they would have before the roll in for the energy they use. Instead of paying a larger fuel adjustment charge, the fuel cost will be rolled in to the base rate.

The fuel adjustment charge is adjusted every two years by the Kentucky Public Service Commission to reflect the cost of fuel used to produce electricity. The cost of power purchased to meet system demand is also factored into the fuel adjustment charge.

Jackson Energy's per kWh residential charge changes from .09081 to .10156 with the fuel charge roll in. The line item fuel charge formula will decrease by the same amount. The fuel charge is monitored and approved by the Kentucky Public Service Commission.

Download Levelized Billing Sign-Up Form

Back to News