what is fuel charge in electricity bill

Fuel charge is a component of an electricity bill that covers the cost of fuel required to generate electricity. It is the cost for fuel required to provide each kilowatt-hour (kWh) of electricity. Fuel charge is different from the energy charge, which covers the cost of producing and delivering electricity. The fuel charge can vary depending on the cost of fuel and purchased power necessary to meet the energy requirements. The non-fuel charge, on the other hand, is the cost other than fuel to produce and deliver electricity, including the cost of operating power plants and delivering electricity to customers.