Fuel Adjustment And Environmental Surcharge

The fuel adjustment charge represents a direct pass-through charge from Farmers RECC’s power supplier, East Kentucky Power Cooperative (EKPC). The charge recovers a portion of the cost of coal and natural gas needed to operate EKPC’s power plants. As costs for coal and natural gas vary, the amount of the fuel adjustment charge will change from month-to-month and can be either a charge or a credit on your bill based upon EKPC’s fuel costs from one period to the next.

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 reflects a direct pass-through charge from Farmers RECC’s power supplier East Kentucky Power Cooperative (EKPC). The charge recovers the equipment and operational expenses that EKPC incurs as it complies with the Environmental Protection Agency (EPA) regulations on its power plants. The cost varies over time as EKPC adds new equipment and the cost to operate the equipment changes.

The Kentucky Public Service Commission regularly reviews and audits the environmental surcharge process to ensure accuracy and compliance with state law. 

The table below includes information for the fuel adjustment and environmental surcharges. 

**The fuel adjustment is calculated on monthly bills by multiplying kWh usage with the fuel adjustment. 

***The environmental surcharge is calculated by adding all line items of the bill and multiplying by the environmental surcharge.