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.