FortisTCI is closely monitoring the impact of external shocks on market fuel prices, which continue to cause increases in the fuel factor rate and result in higher electricity bills. Higher global demand for fuel along with production cuts by leading oil producing countries have caused an increase in market prices, according to J.P. Morgan. While it is difficult to forecast far in advance precisely how prices will change, new projections from our fuel supplier indicate that fuel prices will continue to rise over the next several weeks. As a result, the fuel factor rate on November’s electricity bills increased by up to 10% across some service territories.
The fuel factor rate on customer electricity bills changes with average market fuel prices. Prior to this upswing in prices, fuel factor rates were more stable this year, falling nearly 40% across most service territories between February and September. This downward trend was contrasted by high energy demand during the summer as outside temperatures reached record-breaking levels.
The fuel factor rate on electricity bills is charged for every kilowatt hour of electricity used. When the fuel factor rate increases and a customer's energy consumption increases, their electricity bill will be higher. Similarly, if both decrease, their electricity bill will be lower. If one increases but the other decreases, this will have a more balancing effect. If the customer consumes the same kilowatt hours of electricity, but their electricity bill has increased, the fuel factor rate has likely risen.
FortisTCI understands the challenges associated with higher electricity bills and is committed to diversifying how energy is produced and supporting customers during this time. The Company continues to advocate for suitably tailored, holistic utility sector regulatory reform, and continues to integrate alternative energy sources to the grid through roof-top solar systems and solar-powered microgrids with battery energy storage technology. These projects help to increase the amount of renewable energy on the grid, reduce the impact of global fuel price shocks on local energy costs over time, and lower carbon emissions.
Changes in the fuel factor rate can be tracked by comparing electricity bills. Notices regarding these changes are also issued monthly via email, social media, and other mainstream channels. Customers can also view their daily energy usage data via the Company's free customer portal at www.myftcionline.com.
