Wiregrass News

Understanding the Fuel Charge and Environmental Surcharge

01/30/12

What is the Fuel Adjustment Charge?

It is charge to recover the cost of fuel to generate electricity.

The Fuel Adjustment Charge (FAC) that appears on your bill represents the cost of the fuel for the power plants that generate your electricity. For the most part, it is the cost of coal, but it also can include the cost of natural gas and/or purchased power. Purchased power and gas-fueled power both tend to be significantly more expensive than coal-fueled power.

All money collected for the FAC is passed on to our wholesale power supplier.

The FAC is a pass-through expense. You local cooperative collects the FAC from its members and then passes all of that money on to its wholesale power supplier, East Kentucky Power Cooperative (EKPC). Your local cooperative does not keep any of the FAC that it collects.

The FAC is regulated and monitored by a government agency.

State government regulators (the Kentucky Public Service Commission) closely monitor the FAC charged by EKPC to your local cooperative to ensure that only proper expenses are included. Proper expenses include the cost of power plant fuel or purchased power.

Why does the FAC vary so much from one month to the next even though my usage stays the same?

The cost of power plant fuel and purchased power can fluctuate significantly from one month to the next for several reasons:

The market cost of coal, natural gas and purchased power may rise or fall.
If EKPC has a coal-fired generating unit out of service for maintenance, then that power must be generated by an alternative source or purchased on the power market, both of which tend to be much more expensive.
Even if all coal-fired generating units are operational, EKPC occasionally must operate natural gas-fueled units or purchase power from the market because power usage is so high. This tends to occur on days when it is very hot or very cold because homes and businesses are using more electricity for cooling and heating.

What is the Environmental Surcharge:

It is charge to recover the cost incurred by EKPC to comply with federally mandated environmental regulations.

The environmental surcharge that appears on your bill represents the cost of the equipment and other expenses that EKPC has invested in their power plants to meet federal environmental regulations related to the emissions generated by power plants. For the most part, it includes the cost of scrubbers that remove emissions before they are released into the air. These regulations have become more stringent in recent years, resulting in the investment of millions of dollars in equipment at power plants.

All money collected for the environmental surcharge is passed on to our wholesale power supplier

The environmental surcharge, like the fuel charge, fluctuates each month based on emissions levels from power plants and other expenses that EKPC has to meet the emissions guidelines set by the Environmental Protection Agency.

If EKPC must operate natural gas-fueled units or purchase power from other electric companies to meet demand, that can affect the surcharge.

The environmental surcharge is regulated and monitored by a government agency.

State government regulators (the Kentucky Public Service Commission) closely monitor the rate of EKPC’s environmental surcharge and require that it be approved by the commission each month before it is passed on to the electric cooperatives served by EKPC.

More than 70 percent of our costs are passed on to us by EKPC. These include the cost to generate electricity, the fuel adjustment charge and the environmental surcharge.

All of these charges are set and approved by the Kentucky Public Service Commission following extensive reviews and hearings.

JEC taking applications for scholarship, youth tour programs

01/30/12

Jackson Energy is taking applications for the 2012 Scholarship Essay and Washington Youth Tour programs.

High school seniors and college students up to age 21 are eligible for the scholarship program. Eight students will receive a $1,200 scholarship, which is paid to the post-secondary school they attend.

High school juniors are eligible to compete for the Washington Youth Tour program, which includes a week-long educational trip to the nation's capital in June. Students learn about national energy issues, the rural electric program and also tour historical sites in Washington, D.C.

To download an application for the scholarship program, click on the following link -

Scholarship Essay Program.

To download an application for the Washington Youth Tour, click on the following link -

Washington Youth Tour.

For more information about either program, contact Haley McCoy, 606/364-9226, or

via email, haleymccoy@jacksonenergy.com.

Connections card offers online rebates

01/30/12

Jackson Energy members have a new way to save with the Co-op Connections card.

The new My VIP Savings program gives co-op members cash back on many online purchases.

To participate, members need to go to the Co-op Connections homepage, which is found by clicking on the Co-op Connections card on the homepage of the Jackson Energy website, www.jacksonenergy.com.

After linking to the Co-op Connections site, click on the My VIP Savings link. First-time users will be prompted to establish an account, and then it's on to shop at more than 1,000 merchants, including Apple, Best Buy, Target and Wal-Mart.

Members need to enter a company's website through the My VIP Savings link to earn rebates. Rebate amounts vary by merchant. A member can request a rebate check once he or she earns a minimum of $25 in cash back rewards.

Owsley students award $1,000 All "A" Scholarships

01/30/12

Basketball tournaments and the dreams of young people are often intertwined in Kentucky.

For four Owsley County seniors, the recent Touchstone Energy All "A" Classic will help their academic, not athletic, dreams come true.

They were among the 60 students who were awarded $1,000 scholarships. The scholarships are part of the annual baksetball tournament's activities that highlight the achievements of students from Kentucky's smallest high schools.

Winners from Owsley County High School were Ciara Christian, Cody Chandler, Derek Reed and Tyler Roberts.

"Jackson Energy congratulates these students on winning scholarships," says Jackson Energy President & CEO Don Schaefer. "We support youth and education, and are proud that as a Kentucky Touchstone Energy Cooperative, we help make this scholarship program possible."

Five hundred and fifty-eight students from all areas of the Commonwealth applied for the awards. Winning students were selected after interviews were conducted in January, and were recognized at a banquet during the All "A" Classic tournament.

Register credit/gift card before paying bill

01/23/12

If you purchase a prepaid Visa/MasterCard gift or credit card, be sure to register it before attempting to use it to pay your electric bill online.

The cards require that they be registered with the 16-digit card number and owner's home zip code before they can be used for internet purchasing, like Jackson Energy's online bill pay system.

If the card has not been registered it will be declined even though there is enough money on the card to pay the bill.

2012 WIRE scholarships available for Kentucky students

01/18/12

The Kentucky Chapter of Women in Rural Electrification (WIRE) is taking applications from Kentucky college students to offer at least three $1,000 scholarships.

The scholarships are open to any applicant who meets the following criteria:

	Student’s family must be served by a Kentucky rural electric cooperative.
	Student must have at least 60 credit hours at the beginning of the 2012 fall college term.
	Student must attend a Kentucky college or university.

The scholarship application deadline is May 7, 2012.

Scholarships will be awarded based on academic achievements, extracurricular activities, career goals, recommendations from professors and community leaders, and financial need.

To download an application, click on the link below -

2012 Wire Scholarship Application