What is fuel purchase?

What is fuel purchase?

The Authority uses various types of fuel to generate the electricity that it serves its customers. This fuel is purchased at market prices according to the conditions at the time of purchase. The total spent on fuel is entered into a formula that tells us the cost of fuel for each kilowatt-hour produced. Then we charge customers based on this per kilowatt-hour cost and the total number of kilowatt-hours that the customer consumed during the billing period.