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August 13, 2017

Purchase Power Fuel Charge
Each month FBEMC is billed for the electricity we purchase for distribution to our members from Progress Energy. The
Electrifier Newsletter base price for this energy along with facility charges are set by a long term contract between FBEMC and Progress Energy.
In addition to the base price, there is also a price for the fuel component necessary to generate this energy each month.
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This fuel price varies each month depending on the actual cost of the fuel used for generation. Several factors are involved

Outage Map in Progress Energys calculation of this charge. Some factors are natural gas and coal costs, rail transportation, weather,
Generation stations on line, and monthly demand. For instance, Progress Energy may have to take a nuclear generating
Service Area unit down for unscheduled maintenance for several days within a month. They must replace this low cost generation with a
much higher cost natural gas generating unit for those days to cover the demand for the energy. This situation will increase
Right of Way the fuel charge for all their customers including French Broad EMC. If coal or the transportation of coal goes up, French
Broad EMC can also expect to see an increase. Weather can also drive the cost of our fuel component similar to the price
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of gas at the pump for your automobile. When the Hurricanes hit last fall, it not only crippled the manufacturing facilities for

Energy Saving Tips gasoline, it also disrupted natural gas supplies, causing the price to increase substantially.

In order for French Broad EMC to cover these costs, it is necessary for us to pass these costs on directly to our customers.
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These costs vary from month to month because of the factors mentioned above. Keep in mind that it takes us a few months
Capital Credits after we are charged to fully recover what Progress Energy charges us. This is because French Broad EMC averages
these costs over the three prior months in order to keep the charges from fluctuating up and down so dramatically to our
Renewable Energy members. French Broad EMC remains committed to keeping our operational costs at a reasonable level. Unfortunately, we
cannot control the cost of fuel and as long as fuel costs continue to remain at such high levels across the nation, French
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Broad EMC along with other energy suppliers will be forced to pass these costs onto their customers.

Fiber Internet In an effort to keep our membership informed on the fuel situation, we are listing the fuel charges for the past several
months as well as the current month. We hope that this information will be beneficial for our customers to better plan and
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budget as necessary.

Purchase Power Fuel Charge

Month Charge
September, 2015 $0.00301
October, 2015 $0.00701
November, 2015 $0.00799
December, 2015 $0.00749
January, 2016 $0.00569
February, 2016 $0.00497
March, 2016 $0.00245
April, 2016 $0.00145
May, 2016 -$0.00093 Credit
June, 2016 -$0.00493 Credit
July, 2016 -$0.00893 Credit
August, 2016 -$0.00995 Credit
September, 2016 -$0.00595 Credit
October, 2016 -$0.00195 Credit
November, 2016 $0.00205
December, 2016 $0.00605
January, 2017 $0.00464
February, 2017 $0.00155
March, 2017 -$0.00046 Credit
April, 2017 -$0.00294 Credit
May, 2017 -$0.0034 Credit
June, 2017 -$0.00291 Credit
July, 2017 -$0.00462 Credit
August, 2017 -$0.00631 Credit

Thank You,
Jeff Loven
General Manager

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