What is the Fuel Adjustment?

Fuel Adjustment Clause or FAC is the method in which Freeport Electric accounts for fluctuations in the cost of energy without having to change our base rates. The term FAC is a little misleading because many factors other than fuel are considered when calculating the value each month. Many utilities use the term purchased power adjustment clause or PPAC because it addresses the multitude of cost associated with producing the electricity and getting it delivered to our location. They are pretty much interchangeable, but do not reflect the cost of gasoline in we put in our trucks. Even though gasoline prices have come down, the overall price of natural gas and hydro‐electric has increased.

Show All Answers

1. What is the Fuel Adjustment?
2. How long has Freeport had the FAC on our bills?
3. How is the FAC rate calculated?
4. Does every utility calculate the FAC the same way?
5. How is the FAC applied?
6. Does Freeport profit from the FAC?
7. But I thought we get most of our power from Niagara Falls?
8. What are congestion charges?
9. What about the new power plant?
10. Freeport’s rates are higher than LIPA’s!
11. Some Key Points: