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FAC Explanation

FAC Explanation

Friday | April 3, 2020
All News

We have received numerous inquiries concerning the abnormally large daily balance that occurred on Prepay accounts on Wednesday April 1, 2020.  This was due to a change in the Fuel Adjustment Clause.  Below is a brief explanation.

What is the Fuel Adjustment Clause?

Simply put, the Fuel Adjustment Clause (FAC) is determined by the cost of the fuel used to generate electricity (typically coal or natural gas).  This cost is determined by our power supplier through a calculation approved by the Public Service Commission.  Jackson Energy does not receive any of the proceeds and simply passes it through to our power supplier.

Why did I see an increased charge on April 1, 2020?

Every 2 years, a review of the Fuel Adjustment Clause is conducted by the Public Service Commission.  Based on the results of the most recent review, the Fuel Adjustment Clause credit was rolled into Jackson Energy’s rate which resulted in a rate reduction.  When this happens, the Fuel Adjustment Clause is re-set and the credit is replaced by a debit.

Prepay accounts true-up on the 1st day of each month.  On Wednesday April 1, 2020, the debit was applied resulting in an increased charge.

If you have any questions concerning your account, please contact us.  We can be reached via email, website, online chat, or you can call us at 1-800-262-7480.

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©2023 Jackson Energy Cooperative. All Rights Reserved

  • About Us
    • About Jackson Energy Cooperative
    • About Touchstone Energy Cooperatives
    • CEO & Board of Directors
    • Careers
    • Cooperative Principles
    • Jackson Energy Bylaws
    • Service Territory
    • Conflict of Interest Policy
  • Member Center
    • Capital Credits
    • Co-op-connections
    • Member Information
    • Scholarships & Youth Tour
    • Solar
    • Net Metering
    • Operation RoundUP
    • Rates & Tariffs
    • Enviromental Surcharge
    • Fuel Adjustment Clause
    • Annual Meeting / Member Appreciation
    • KY Sales Tax Exemption
    • Understanding your Jackson Energy bill
  • Services
    • Apply for service
    • Request Disconnect
    • EV Charging Station
    • Prepay
    • Residential Service
      • Energy Efficiency
        • 101 Easy Ways To Save
        • Energy Efficiency Programs
        • Energy Savings Home Tour
        • Home Efficiency Analysis Tool
        • Together We Save KY
      • Residential Rates
      • Residential Service Documents
      • Residential Sign Up Fees
    • Commercial Service
      • Business sign up fees
      • Commercial Rates
      • Commercial Service Documents
      • Pole Attachment Request
    • GenerLink
  • Payment Center
    • How to Pay Your Bill
    • Kiosk Locations
    • Pay Now
  • Safety
    • Call 811
    • Right of Way
    • Safety Tips
    • Storm Center
  • Our Community
    • Jackson Energy Spotlight
    • Kid's Korner
    • Kids Energy Zone
    • Co-ops Vote
    • FOCUS Film Project
    • Legislative Guide
    • Powering the good reliability video
    • CAA
  • Outage Center
  • News And Events
    • SBA- U.S. Small Business Administration