Purchased Power/Fuel Charge Adjustment/Hydro Power Credit

Q. What is the Purchased Power & Fuel Charge Adjustment?

A. The Federal Energy Regulatory Commission (FERC) allows fuel charge adjustments (FCA) for purchased power (PP) in rate schedules for wholesale electric service. The FERC has long recognized that the purpose of a Fuel Charge Adjustment is to keep utilities whole with regard to changes in the cost of fuel. It allows utilities to pass through to their wholesale ratepayers increases or decreases in the cost of fuel without having to make separate filings which reflect each change in fuel cost, and without having to obtain prior FERC approval of each change in fuel costs.

Q. What is the Hydro Power Credit?

A. Some of the Purchased Power for residential rates comes from Hydro-Electric plants. As long as this power costs less than conventionally obtained power, the portion per residential customer/kWh will be credited back to your account each month.