Missouri PSC Approves Fuel Adjustment Charge Decrease

Liberty Utilities – Empire District customers will see a decrease in the fuel adjustment charge (FAC) on their electric bills beginning December 1, following a ruling by the Missouri Public Service Commission. Read the full press release below:

FAC is the difference between fuel and purchased power costs built into the current rate structure and the actual fuel and purchased power costs incurred by Liberty Utilities – Empire District. This rate changes twice a year. If fuel costs are less than what was built into the current rate, customers see a credit in the FAC line. If fuel costs are more, customers see a charge. FAC adjustments do not require a full rate case before regulators.

“While Liberty – Empire is a regulated utility, the fuel it buys, including coal and natural gas, as well as electricity purchased on the market, is not regulated at the wholesale level,” said Brent Baker, Vice President of National Customer Experience Operations for Liberty Utilities – Empire District.

The previous FAC rate was $.00758 per kilowatt hour. The new FAC will reflect a credit of $0.00087 per kilowatt hour. For a residential customer using 1000 kilowatt hours per month, this decrease in the FAC rate will result in a credit of $8.45 to their bill.

Wholesale fuel and purchased power costs are not price regulated and can fluctuate significantly based on weather and other factors. The fuel adjustment reduces risk for both the customer and the company and may result in less frequent rate cases, reducing overall expenses passed on to customers.

“The FAC only reflects what our company has spent on fuel within the last six month period. When fuel and power costs are lower than anticipated, customers will see a return on their bill. This lowers risk for both the customer and the utility,” explained Baker.