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Fuel Adjustment Clause

The fuel adjustment clause recovers a portion of the cost of coal and natural gas needed to run power plants, and costs to buy power from other utilities.


Q. Does the fuel adjustment change with the price of gas?
A. It has nothing to do with the cost of gasoline for Grayson 
RECC’s trucks. The fuel charge recovers a portion of the costs 
incurred by our power supplier for coal and natural gas to 
operate its electric plants, and their costs to buy power from 
other utilities.

Q. Why does it go up and down so much?
A. Costs for coal, gas and purchased power vary, along with 
weather. Changes in weather will dramatically change the 
amount of the fuel charge.

Q. Does anyone check to make sure the fuel charge 
is accurate?
A. Every six months, state regulators review our power 
supplier’s fuel adjustment clause calculations to make sure 
the charges are in compliance with state regulations.

Q. What else explains the differences I see compared to 
months last year? 
A. Check electric usage in the months being compared. 
Because you typically use more electricity in the winter and 
summer than in the fall or spring, your fuel charge will 
generally be higher around the hottest and coldest months.

Q. Who decides what the charges are?
A. Our power supplier uses a formula approved by state 
regulators. Every penny goes directly to our power supplier. 
State regulators make sure that only proper expenses are 

Q. Is there anything I can do?
A. Absolutely. Most homes have leaks in duct work and lots 
of places where outside air gets in. Fixing those problems can 
significantly reduce energy consumption. By being more 
energy efficient and lowering electric use, you can help to 
reduce the fuel charge.

Q. Can the co-op help me with that?
A. We offer efficiency programs, provide free energy audits 
and provide free energy tips. Go to
to learn more.


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