Harold N. from Olathe KS. I'm trying to understand how Evergy calculates their fuel adjustment clause and whether it updates monthly or quarterly. The tariff mentions a "fuel adjustment factor" but doesn't clearly specify the update frequency. Working on a retail client who wants to understand why their bills fluctuate so much month to month beyond just usage changes. Anyone familiar with Evergy's FAC methodology?
Fuel adjustment clause calculations - monthly vs quarterly updates
Ken G. from Lincoln NE. Harold, most utilities in this region update fuel adjustments monthly based on a rolling average of fuel costs with a 2-3 month lag. NPPD here in Nebraska files monthly FAC updates with the commission, typically reflecting fuel costs from 2 months prior. The calculation usually includes coal, natural gas, and purchased power costs weighted by generation mix. Evergy probably follows a similar model but you'd need to check their most recent rate case for the specific methodology.
Thanks Ken. I'll dig into their recent rate case filings to find the exact methodology. The monthly fluctuations have been pretty significant - last year ranging from $0.015/kWh to $0.031/kWh which makes client budgeting difficult. Do you know if there's typically a cap or collar on how much the FAC can change from month to month?