What is an Energy Cost Adjustment?
The Energy Cost Adjustment line item on your Craighead Electric bill (also sometimes called a Fuel Cost Adjustment) usually does not get much attention, except during times of high energy cost when it impacts your bill the most.
Craighead Electric Cooperative generates no energy on its own. All energy is purchased from our Regional Transmission Authority (or RTO) Arkansas Electric Cooperative Corporation (AECC). When the cost to generate that energy fluctuates an energy cost adjustment is applied to each member’s bill. This adjustment factor (charge or credit) is multiplied by kilowatt-hours used in the current month. The fuel cost adjustment is usually small, and there is no profit added. It is a pass-through cost from wholesale directly to the consumer.