Higher energy costs adjusts Edmond Electric FCA rate
EDMOND, Okla. (KFOR) - Starting in October, a change in the Fuel Adjustment Cost (FCA) rate will appear on Edmond Electric customer's monthly bill.
According to Edmond Electric, the FCA is a fee charged per kilowatt hour used to help recover the cost of buying wholesale electricity. The rate is based on market costs and electricity prices across Oklahoma, which rose 48 percent between June 2021 and June 2022. The cost of natural gas is the main cause of that rise.
Beginning in October, Edmond Electric services will be set at 2.5 cents per kilowatt. That fee is separate from the normal electricity usage fee, which is 8.51 cents per kilowatt.
"The FCA is how we collect revenue needed to cover the cost of purchasing the energy from the wholesale market,” said Glenn Fisher, Edmond Electric Director.
“This is the energy we distribute to our retail customers. Right now, we are seeing unusually high wholesale market prices for energy, and so we have made the adjustment to cover that cost. But, when we see the market readjust and lower, that FCA rate will drop too. It’s important for our customers to understand that the FCA is not a source of revenue for Edmond Electric. It is just a pass through of the costs of acquiring the wholesale energy.”
Edmond Electric advises customers across the state to manage their usage to help lower costs. They released some tips to help achieve this:
- Cooling costs are typically 60 percent of your total utility bill. For every degree you set the thermostat below 78 degrees, you use 2 to 5 percent more electricity.
- Turn off lights in any room you’re not using or consider installing timers or sensors to reduce the amount of time your lights are on.
- Remember to clean the coils on your refrigerator.
- Clear outdoor air conditioning units and heat pumps of debris and shrubbery so they can work more efficiently.
- You will conserve energy by turning off or using sleep mode for any computer not in use for two hours or more.
- Lower the temperature on your water heater. A setting of 120 degrees Fahrenheit provides comfortable, hot water for most uses. And installing an insulating blanket on your electric water heater should pay for itself in less than a year.
For more information regarding energy use in Edmond and your home, call 405-216-7608.