Why is my Fuel Cost Adjustment and TO/RTO rider so HIGH?

What is a Fuel Cost Adjustment and TO/RTO rider?

If the amount paid by C&L Electric to its wholesale electric supplier for the energy purchased differs from what is built into the base electric rates, then this fuel cost adjustment is applied to each member's bill. This adjustment factor — charge or credit — is multiplied by kilowatt-hours used in the current month. The fuel cost adder is a direct pass-through for increased costs. There is no markup over what C&L Electric must pay for fuel used for power generation.


What causes it to go up or down?

When the price of the fuel used to generate electricity goes up or down, so does the cost of that electricity. Geopolitical factors or extreme weather events can cause large acute swings in that cost.  As our fuel mix moves from stable but polluting sources of energy like coal to volatile but cleaner natural gas and intermittent renewables these swings in energy cost may become larger.


What can I do?

The most effective way to lessen the impact of increased energy costs is to reduce your energy usage:


What is being done to keep it low?

AECC has a diverse portfolio of different types of generation that fortunately reduces the cost impact of severe weather events and shortages. See AECC’s Balance of Power initiative to learn how their robust mix of energy sources hedges against dramatic changes in generation fuel cost. Learn more about AECC’s Energy Cost Adjustment



Understanding Electricity Supply and Demand

Source from StraighTalkAlert on YouTube