Energy Cost Adjustments
The Fuel Adder
Why is a fuel adder on my bill?
Perhaps explaining what a fuel adder is will help answer the question better. A fuel adder surcharge is implemented when the cost of producing electricity increases. Your electric cooperative must add the temporarily high surcharge to your bill to cover the additional costs of generating electricity.
Why are there additional costs with making the electricity?
Good question. The rising costs of fuel, primarily natural gas, that is used to generate electricity is the primary driver behind rising electricity costs.
Is there anything that can be done about the fuel adder charge by my local cooperative?
Unfortunately, no. As a not-for-profit organization, you can rest assured your local electric cooperative will never make a profit off of our members’ added burden. By law, a fuel adder must go directly toward covering the added costs. Nothing more, nothing less.
Is this just a problem in Arkansas
While our state often benefits from a low cost of living, energy prices are rising nationwide. For some natural gas and propane users, their energy bill will increase at a higher rate. For members like you, your electric cooperative has a proven record of managing costs to keep rates as low as possible. That commitment to you will never change.
What can I do to keep unnecessary costs from attaching to my monthly bill?
Contact your electric cooperative for energy-saving tips on keeping your electric costs down. It takes working together to make the best use of resources. As your friendly, local cooperative, we do every thing in our power to provide safe, reliable electricity and service to you.
Close all draperies and shades at night to reduce heat loss. Drapes save energy only if they fit tightly around the window frame. This usually means a valance at the top, side guides and a weighted hem.
Electricity in Arkansas
What does electricity come from?
There are a number of ways to produce electricity. The most common methods include using coal or natural gas at generation facilities to generate electricity.
Why does this matter to me?
When the costs of fuels increase – and they have skyrocketed recently – it can trigger a “fuel adder” charge on your bill to cover the extra costs incurred by your local electric cooperative to deliver power to you.