WHY IS MY BILL HIGHER THIS MONTH?
Electric bills around Kentucky and other parts of the US have been higher recently. There are several reasons this is the case. During winter months, members typically see higher electricity bills due to the energy needed to keep your home comfortable when outside temperatures drop. During the summer months, cooling units run longer and trying to cool your house thus producing high electric bills. Keeping your system checked out regularly is the best medicine which may prevent a problem in the future.
In addition to this normal increase in usage, there was a significant increase in the Fuel Adjustment Clause (FAC) and Environmental Surcharge (ES). These two charges are not controlled by Inter-County Energy and Inter-County does not receive the money from these charges. Both the FAC and ES are pass-through charges from our power provider, East Kentucky Power Cooperative.
The fuel adjustment clause (or FAC) recovers a portion of the cost of coal and natural gas that is needed to operate East Kentucky’s power plants. When the cost of coal and natural gas increase month to month, as they did from December to January, the fuel adjustment also increases. So, when the price of coal and natural gas is lower, the fuel adjustment can be a credit. When their cost is higher, like it was for January, it can become a charge.