CPU Adjusts Fuel Rate Cap to Counter Rising Fuel Costs

Strategy has helped reduce customer bills by $1.34 million since August

As part of their strategy to lessen the impact of rising fuel costs on Clarksdale Public Utilities customers, the CPU Board of Commissioners has extended the Customer Power Cost Relief Plan passed in August, which has helped reduce energy bills by approximately $1.34 million by imposing a fuel adjustment rate cap.

With a goal to extend the relief plan, the board voted to raise the fuel adjustment rate cap to reflect current economic conditions and the sustainability of CPU’s reserve fund.

“The relief plan worked as designed by reducing the financial burden placed on customers due to rising fuel charges and higher cooling bills,” said Curtis D. Boschert, CPU general manager. “Now that summer is over and customers have reduced their energy usage, we felt it was the right time to adjust the fuel rate cap to continue its cost-saving benefits.”

CPU does not profit from the fuel adjustment charge that appears on customers’ bills. Instead, it is a “pass-through” charge that CPU is required to collect from customers and pay directly to suppliers for fuel and transmission costs—both of which have continued to escalate in recent months.

In August, CPU capped the fuel adjustment amount at .0267 per kilowatt-hour—a 50% reduction from the previous month’s bill. For the upcoming round of billing that starts Nov. 15, the fuel adjustment cap will be .0394, an increase of .0127.

To cover the reduction in revenue, CPU applied credits earned from its electricity supplier, Mississippi Delta Energy Agency; and has drawn from a reserve fund established several years ago to address challenges brought on by unanticipated events and circumstances.

“Based on seasonal usage patterns, increasing the fuel adjustment cap will not significantly impact power bills,” Boschert said. “By responsibly managing CPU’s reserve fund, we have been able to extend the Customer Power Cost Relief Plan and help customers and the community during these difficult economic times.”

CPU also offers customers a variety of convenient payment options and tips to improve efficiency and lower bills at For customers struggling to pay bills, CPU works out payment plans to help customers keep their accounts in good standing.

Clarksdale Public Utilities is a municipally owned utility serving approximately 6,800 homes and businesses in Clarksdale, Mississippi. Its mission is to safely provide sustainable electric, water and wastewater services in a reliable and courteous manner by well-trained team members, committed to top quality, efficient operations, competitive rates and the vitality of the community.

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For more than 120 years, Clarksdale Public Utilities has supplied utility services that support our community’s growth, vibrance and quality of life. But we are more than a provider of reliable and affordable electric, water and wastewater services — we are your family, friends and neighbors. We are people who care. We are CPU.

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