You have questions about your high bills, and we have answers for you. Read the article below for information regarding high bills and what has caused them. Then, check out an example of a member’s bill, breaking down the charges and fees so that you know which ones Salt River has control over, and which ones we don’t. 

By now, you’ve probably seen your latest electric bills, and have discovered that it’s much larger than usual. The reason for the large increases can possibly be attributed to one of or all four of these factors: the colder weather we experienced, your heating system, the use of emergency or auxiliary heat, as well as the fuel adjustment clause and environmental surcharge. During the month of January, members generally used more energy to heat their homes than in previous months.

This past January, our areas recorded some of the lowest temperatures we’ve seen in a while. As a matter of fact, the 4th coldest January temperature in the last 20 years occurred during the weeklong period of sub-zero temperatures we saw in January. The colder it is outside, the harder your heating system has to work to keep your residence heated.

The other factors that have dramatically increased bills this month are the fuel adjustment clause and the environmental surcharge. These two bill items, which are not controlled by Salt River Electric, are pass-through items that go to our power provider, East Kentucky Power. That means Salt River Electric receives nothing from these additional charges. 

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. 

The Kentucky Public Service Commission regularly reviews and audits the fuel adjustment charge process to ensure accuracy and compliance with state law. 

The environmental surcharge is another pass-through item that goes to our power provider. This charge, which also changes month to month, recovers the equipment and operational expenses that EKPC collects as it follows the Environmental Protection Agency’s (EPA) regulations for its power plants. The cost varies over time as EKPC adds new equipment and the cost to operate the equipment changes. 

Just like with the fuel adjustment clause, the Kentucky Public Service Commission regularly reviews and audits the environmental surcharge process to ensure accuracy and compliance with state law.  

While we hope this information helps you understand the reason behind your bill increase this past month, we know that it doesn’t change how much your bill is. Know that we’re here for you and, if needed, can help you find a payment solution that works best for you.