How is the FAC rate calculated?

The FAC is calculated the beginning of each month, and must be submitted to the Department of Public Service (DPS) for approval 3 business days before it can be billed. Without DPS approval, we cannot send out bills. It is calculated every month based on the actual costs from the prior month and is spread out based on the anticipated kWh sales for the current month. For example: to calculate the August FAC we would take our total energy expenses for the month of July and divide by what we think our sales will be for August and come up with a rate to charge our customers. If the weather or some other factor causes our sales to increase or decrease we will over or under collect and have to make an adjustment the following month.

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1. What is the Fuel Adjustment?
2. How long has Freeport had the FAC on our bills?
3. How is the FAC rate calculated?
4. Does every utility calculate the FAC the same way?
5. How is the FAC applied?
6. Does Freeport profit from the FAC?
7. But I thought we get most of our power from Niagara Falls?
8. What are congestion charges?
9. What about the new power plant?
10. Freeport’s rates are higher than LIPA’s!
11. Some Key Points: