What is the Fuel Adjustment Charge on my Bill?

The fuel adjustment charge is a direct pass through of fuel costs to produce and deliver your electricity. Fuel and purchased power costs are the largest single variable expense for electric utilities, and they can vary greatly on the basis of supply and demand, and other factors. Under utility regulations. these expenses are passed along to custoemrs at cost, through a charge on their bill commonly referred to as a "fuel adjustment fee." Utilities do not profit from increase fuel and purchased power costs.