The fuel cost recovery charge is one of the most confusing—and variable—parts of your Georgia Power bill. Unlike the base rate, which changes infrequently, the fuel charge adjusts quarterly based on actual fuel costs incurred by Georgia Power to generate electricity.
Understanding this charge helps explain why your bill can change even when your usage stays constant.
What Is the Fuel Charge?
Georgia Power generates electricity using a mix of natural gas, coal, nuclear, and renewables. The cost of fuel (primarily natural gas and coal) fluctuates based on commodity markets. Rather than build these variable costs into the base rate, Georgia Power uses a separate line item that adjusts quarterly.
This "pass-through" mechanism is approved by the Georgia Public Service Commission (PSC) and is designed to reflect actual fuel costs without requiring a full rate case each time prices change.
How It Affects Your Bill
The fuel charge is expressed as cents per kWh. For a typical household using 1,200 kWh/month:
| Fuel Charge Rate | Monthly Impact |
|---|---|
| $0.025/kWh (low) | $30.00 |
| $0.035/kWh (typical) | $42.00 |
| $0.045/kWh (high) | $54.00 |
A $0.02/kWh swing in the fuel charge means a $24/month difference for the same usage—a significant amount that has nothing to do with your behavior.
Why It Changes
Fuel charges fluctuate based on:
- Natural gas prices: Georgia Power's largest fuel source; highly volatile
- Coal prices: More stable but still market-dependent
- Generation mix: Which plants are running affects average fuel cost
- Prior period adjustments: Over/under-recovery from previous quarters
The PSC reviews fuel costs quarterly and approves adjustments. Georgia Power cannot profit from fuel charges—they're a direct pass-through of costs.
Finding the Fuel Charge on Your Bill
On your Georgia Power bill, look for "Fuel Cost Recovery" in the charges breakdown. It's listed separately from the base energy charge. The rate ($/kWh) multiplied by your usage equals the fuel charge amount.
If you're on a time-of-use plan, fuel charges may be incorporated differently—check your specific rate schedule.