In the last twelve months, the cost of natural gas has increased 173%. Escalating gas prices dramatically affect fuel prices of electric suppliers, which translates into gas representing the majority of the cost to produce electricity, a natural gas cost increase impacts Garland Power & Light's total generation cost.

GP&L considers the management of fuel cost a serious matter and is focused on optimizing coal and gas contracts to reduce exposure to fuel price fluctuations. GP&L's fuel supply administrator is responsible for day-to-day purchase of short and long-term natural gas for its eight generation units.

Fortunately for GP&L customers, 64% of GP&L's power is generated at Texas Municipal Power Agency's Gibbons Creek plant. This plant utilizes less costly coal to produce electricity. The mixture of 64% coal and 36% natural gas production allows GP&L to hold fuel adjustment charges down.

The fuel adjustment portion of a GP&L customer's electric bill is currently 8% lower than that of a comparable utility using a higher percentage of natural gas to produce electricity.