Important News on Fuel Adjustment Clause
Every six months the Kentucky Public Service Commission (PSC) requires Nolin RECC to submit information certifying our compliance with Administrative Regulation 807 KAR 5:056. In simple terms, Nolin must send the PSC official records that give detailed information about our electric wholesale and retail costs, member consumption, and line loss. The data is reviewed by the PSC in an effort to determine whether Nolin is complying with required regulations of the PSC. At the end of every two years, the PSC reviews our fuel adjustment charge filings to determine whether there should be any adjustments to the base fuel rate included in Nolin’s rate.
These adjustments to the base fuel rate began in the 1970s. This methodology created and monitored by the PSC avoids costly, frequent fuel hearings. The fuel adjustment is calculated by our wholesale power supplier, East Kentucky Power Cooperative (EKPC), under the guidelines set up by the PSC. Itis passed on to us each month in Nolin’s power bill, and we in turn pass it on to the member. Nolin does not keep any of these funds–they are directly passed back to EKPC.
The PSC ordered Nolin RECC to roll-in a fuel adjustment. The roll-in took effect September 1, 2017, and was reflected on your September electric usage. The fuel adjustment will change the residential electric base rate to .09022 per kWh. The recent roll-in decreased base rates and the fuel adjustment clause will be adjusted by the same amount, resulting in smaller credits. In other words, the calculation of your bill will be different, but the total amount you owe will not change.
The fuel adjustment is monitored closely, and Nolin complies with all rules and regulations set forth by the PSC. If you have any questions, please call the office at (270) 765-6153.