Fuel & Emissions Adjustment Cost Explained

Dalton Utilities adds the Fuel & Emissions Adjustment to electrical customers’ bills as a fluctuating cost to recover fuel and environmental compliance costs associated with operating the generating facilities from which Dalton Utilities obtains power.  The single greatest factor affecting the price of energy generation in the southeastern US today is the price of natural gas delivered on interstate pipelines.  Therefore, Dalton Utilities calculates an F&E adjustment based on natural gas prices monthly (for commercial and industrial customers) and quarterly (for residential customers) to offset the additional power cost we incur.  These costs are passed along to the Utility and are out of the Utility’s control.