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February 24, 2018

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
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month. This fuel price varies each month depending on the actual cost of the fuel used for generation. Several factors

Outage Map are involved in Progress Energy’s 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
Service Area take a nuclear generating 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
Right of Way energy. This situation will increase 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
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of our fuel component similar to the price of gas at the pump for your automobile. When the Hurricanes hit last fall, it not

Energy Saving Tips only crippled the manufacturing facilities for gasoline, it also disrupted natural gas supplies, causing the price to increase
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In order for French Broad EMC to cover these costs, it is necessary for us to pass these costs on directly to our
Capital Credits customers. These costs vary from month to month because of the factors mentioned above. Keep in mind that it takes us
a few months after we are charged to fully recover what Progress Energy charges us. This is because French Broad
Renewable Energy EMC averages these costs over the three prior months in order to keep the charges from fluctuating up and down so
dramatically to our members. French Broad EMC remains committed to keeping our operational costs at a reasonable
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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 Broad EMC along with other energy suppliers will be forced to pass these costs onto their
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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
budget as necessary.

Purchase Power Fuel Charge

Month Charge
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
September, 2017 -$0.00293 Credit
October, 2017 $0.00107
November, 2017 $0.00507
December, 2017 $0.00907
January, 2018 $0.00721
February, 2018 $0.00321

Thank You,
Jeff Loven
General Manager

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