The Kentucky Attorney General’s Office has received numerous complaints this winter related to the rising costs of electric and natural gas.
Attorney General Daniel Cameron said many of the reported increases are related to the fuel adjustment clause, a pass-through cost based on the cost of fuel to generate electricity. This cost can fluctuate based on the price of fuel, or purchased power, used to supply electricity. The FAC can affect the cost of both natural gas and electric utility bills.
The FAC is regulated by the Kentucky Public Service Commission, a separate government agency which also regulates public utilities. Each month, the Kentucky Public Service Commission reviews FAC filings for accuracy and evaluates and approves customer and delivery charges related to natural gas service.
Complaints related to FAC and customer delivery charges can be filed with the Public Service Commission here: https://psc.ky.gov/WebNet/Inquiry.
The FAC is a separate cost from utility rates because it fluctuates monthly, Cameron said. One month, it may appear as a credit on your account, and the next month it may appear as a charge as the cost fluctuates. This is billed in direct proportion to the amount of electricity consumed and the cost the companies pay for the fuel (coal or natural gas) to generate that amount of electricity.
During peak winter months, the FAC cost often rises because the price of natural gas typically rises.
You may wish to consider enrolling in an average monthly payment plan. Many utility companies offer plans that spread the costs of heating and cooling over the whole year, allowing Kentuckians to pay roughly the same amount during high usage months as you pay during off-peak months. To learn more about monthly payment plan options, contact your utility company.