Fuel Costs and History

Background Information

In June 2012 CVEA revised its rates to include a separate fuel component titled Fuel Charge.  The charge appears as a separate line item on your monthly bill.  This component changes monthly and reflects the actual fuel costs to generate a kilowatt-hour of electrical energy.  The Fuel Charge is directly tied to the cost of crude oil.  In the summer months when CVEA is generating with mostly hydropower, the fuel charge will be lower.  In the winter months when CVEA is generating with less hydro, it will be higher.   

FPPC History
In February 2009 CVEA acquired the Solomon Gulch Hydroelectric Project.  Prior to that, hydropower was purchased from the Four Dam Pool.  In the years prior to 2009, fuel and purchased power were charged as a separate component on your monthly bill titled FPPC.  This rate was updated on a quarterly basis.  With the fluctuating cost of crude oil, it was difficult to charge a levelized cost.  Rising oil costs have impacted the nation since 2005 and natural disasters have resulted in even more dramatic increases in oil prices.  CVEA members started to see those increases reflected on electric bills in October 2005.

Cost of Power History
After acquiring the Solomon Gulch Hydroelectric Project, the FPPC was renamed Cost of Power and reflected the actual cost of fuel and hydro.  It was revised to be calculated on a monthly basis.   

Beginning in 2008 through May 2011, the Cost of Power collected the actual cost of both fuel and hydro to generate a kilowatt-hour of electrical energy.  It reflected price changes in fuel and hydro from the Solomon Gulch Hydroelectric Project.  Hydro is now recovered in the G&T Charge as of June 2012.  For additional information, please follow the links below: