Surcharge Information

Energy Surcharge by Month

There will be no surcharge for April 2024 shipments.

6xxx: $0.000/lb. All other alloys: $0.000/lb.

6xxx Alloys ($/lb)
Month of
Shipment
Month of
DOE data
Natural Gas
(a)
Electricity
(b)
Diesel
(c)
Surcharge
(a+b+c)
Jan-08 Nov-07 $0.0008 $0.0000 $0.0025 $0.003
Dec-08 Oct-08 $0.0000 $0.0026 $0.0033 $0.006
Jan-09 Nov-08 $0.0000 $0.0015 $0.0000 WAIVED
Dec-09 Oct-09 $0.0000 $0.0029 $0.0000 WAIVED
Jan-10 Nov-09 $0.0000 $0.0018 $0.0000 WAIVED
Dec-10 Oct-10 $0.0000 $0.0022 $0.0008 WAIVED
Jan-11 Nov-10 $0.0000 $0.0013 $0.0012 WAIVED
Dec-11 Oct-11 $0.0000 $0.0030 $0.0044 WAIVED
Jan-12 Nov-11 $0.0000 $0.0022 $0.0052 WAIVED
Dec-12 Oct-12 $0.0000 $0.0013 $0.0058 WAIVED
Jan-13 Nov-12 $0.0000 $0.0008 $0.0054 WAIVED
Dec-13 Oct-13 $0.0000 $0.0020 $0.0048 WAIVED
Jan-14 Nov-13 $0.0000 $0.0012 $0.0046 WAIVED
Dec-14 Oct-14 $0.0000 $0.0026 $0.0038 WAIVED
Jan-15 Nov-14 $0.0000 $0.0018 $0.0037 WAIVED
Dec-15 Oct-15 $0.0000 $0.0035 $0.0000 WAIVED
Jan-16 Nov-15 $0.0000 $0.0018 $0.0000 WAIVED
Dec-16 Oct-16 $0.0000 $0.0022 $0.0000 WAIVED
Jan-17 Nov-16 $0.0000 $0.0010 $0.0000 WAIVED
Dec-17 Oct-17 $0.0000 $0.0025 $0.0000 WAIVED
Jan-18 Nov-17 $0.0000 $0.0025 $0.0001 WAIVED
Dec-18 Oct-18 $0.0000 $0.0034 $0.0023 WAIVED
Jan-19 Nov-18 $0.0000 $0.0022 $0.0020 WAIVED
Dec-19 Oct-19 $0.0000 $0.0020 $0.0008 WAIVED
Jan-20 Nov-19 $0.0000 $0.0022 $0.0009 WAIVED
Dec-20 Oct-20 $0.0000 $0.0017 $0.0000 WAIVED
Jan-21 Nov-20 $0.0000 $0.0018 $0.0000 WAIVED
Dec-21 Oct-21 $0.0000 $0.0039 $0.0035 WAIVED
Jan-22 Nov-21 $0.0000 $0.0026 $0.0041 WAIVED
Dec-22 Oct-22 $0.0000 $0.0074 $0.0112 WAIVED
Jan-23 Nov-22 $0.0000 $0.0065 $0.0114 WAIVED
Dec-23 Oct-23 $0.0000 $0.0078 $0.0078 WAIVED
Jan-24 Nov-23 $0.0000 $0.0067 $0.0066 WAIVED
Feb-24 Dec-23 $0.0000 $0.0072 $0.0052 WAIVED
Mar-24 Jan-24 $0.0000 $0.0095 $0.0047 WAIVED
Apr-24 Feb-24 $0.0000 $0.0063 $0.0056 WAIVED

Other Alloys *($/lb)
Month of
Shipment
Month of
DOE data
Natural Gas
(a)
Electricity
(b)
Diesel
(c)
Surcharge
(a+b+c)
Jan-08 Nov-07 $0.0011 $0.0000 $0.0025 $0.004
Dec-08 Oct-08 $0.0000 $0.0071 $0.0033 $0.010
Jan-09 Nov-08 $0.0000 $0.0039 $0.0000 WAIVED
Dec-09 Oct-09 $0.0000 $0.0078 $0.0000 WAIVED
Jan-10 Nov-09 $0.0000 $0.0047 $0.0000 WAIVED
Dec-10 Oct-10 $0.0000 $0.0060 $0.0008 WAIVED
Jan-11 Nov-10 $0.0000 $0.0034 $0.0012 WAIVED
Dec-11 Oct-11 $0.0000 $0.0081 $0.0044 WAIVED
Jan-12 Nov-11 $0.0000 $0.0058 $0.0052 WAIVED
Dec-12 Oct-12 $0.0000 $0.0034 $0.0058 WAIVED
Jan-13 Nov-12 $0.0000 $0.0021 $0.0054 WAIVED
Dec-13 Oct-13 $0.0000 $0.0054 $0.0048 WAIVED
Jan-14 Nov-13 $0.0000 $0.0031 $0.0046 WAIVED
Dec-14 Oct-14 $0.0000 $0.0071 $0.0038 WAIVED
Jan-15 Nov-14 $0.0000 $0.0047 $0.0037 WAIVED
Dec-15 Oct-15 $0.0000 $0.0095 $0.0000 WAIVED
Jan-16 Nov-15 $0.0000 $0.0049 $0.0000 WAIVED
Dec-16 Oct-16 $0.0000 $0.0058 $0.0000 WAIVED
Jan-17 Nov-16 $0.0000 $0.0026 $0.0000 WAIVED
Dec-17 Oct-17 $0.0000 $0.0066 $0.0000 WAIVED
Jan-18 Nov-17 $0.0000 $0.0067 $0.0001 WAIVED
Dec-18 Oct-18 $0.0000 $0.0090 $0.0023 WAIVED
Jan-19 Nov-18 $0.0000 $0.0060 $0.0020 WAIVED
Dec-19 Oct-19 $0.0000 $0.0053 $0.0008 WAIVED
Jan-20 Nov-19 $0.0000 $0.0059 $0.0009 WAIVED
Dec-20 Oct-20 $0.0000 $0.0045 $0.0000 WAIVED
Jan-21 Nov-20 $0.0000 $0.0047 $0.0000 WAIVED
Dec-21 Oct-21 $0.0000 $0.0104 $0.0035 WAIVED
Jan-22 Nov-21 $0.0000 $0.0070 $0.0041 WAIVED
Dec-22 Oct-22 $0.0000 $0.0199 $0.0112 WAIVED
Jan-23 Nov-22 $0.0000 $0.0173 $0.0114 WAIVED
Dec-23 Oct-23 $0.0000 $0.0208 $0.0078 WAIVED
Jan-24 Nov-23 $0.0000 $0.0179 $0.0066 WAIVED
Feb-24 Dec-23 $0.0000 $0.0193 $0.0052 WAIVED
Mar-24 Jan-24 $0.0000 $0.0255 $0.0047 WAIVED
Apr-24 Feb-24 $0.0000 $0.0168 $0.0056 WAIVED

* all 3xxx, 4xxx, 5xxx, 2xxx and 7xxx series alloys

Indices

2007 Average Energy Prices
Natural Gas
($ / mcf)
Electricity
($ / kwh)
Diesel
($ / gal)
2007 Average $7.1830 $0.0635 $2.8820
Monthly Average Energy Prices
Month of
DOE data
Natural Gas
($ / mcf)
Electricity
($ / kwh)
Diesel
($ / gal)
Nov-07 $7.3130 $0.0622 $3.3955
Dec-07 $7.3212 $0.0625 $3.3406
  Jan-08 $8.2452 $0.0627 $3.3078
Dec-08 $5.9946 $0.0676 $2.4490
  Jan-09 $5.3972 $0.0659 $2.2920
Dec-09 $5.5002 $0.0674 $2.7450
  Jan-10 $6.0049 $0.0647 $2.8450
Dec-10 $4.3775 $0.0661 $3.2430
  Jan-11 $4.6247 $0.0635 $3.3880
Dec-11 $3.2651 $0.0670 $3.8610
  Jan-12 $2.7501 $0.0662 $3.8330
Dec-12 $3.4417 $0.0639 $3.9610
  Jan-13 $3.4299 $0.0651 $3.9090
Dec-13 $4.3672 $0.0656 $3.8820
  Jan-14 $4.3220 $0.0660 $3.8930
Dec-14 $3.5865 $0.0671 $3.4110
  Jan-15 $3.0838 $0.0665 $2.9970
Dec-15 $1.9869 $0.0643 $2.3090
  Jan-16 $2.3515 $0.0659 $2.1430
Dec-16 $3.7059 $0.0654 $2.5100
  Jan-17 $3.4097 $0.0649 $2.5800
Dec-17 $2.9160 $0.0688 $2.9090
  Jan-18 $4.0189 $0.0683 $3.0180
Dec-18 $4.1273 $0.0668 $3.1230
  Jan-19 $4.0189 $0.0683 $2.9970
Dec-19 $2.3044 $0.0651 $3.0550
  Jan-20 $2.0968 $0.0652 $3.0480
Dec-20 $2.6910 $0.0641 $2.5850
Jan-21 $2.8188 $0.0631 $2.6810
Dec-21 $3.9066 $0.0677 $3.6410
Jan-22 $4.5508 $0.0682 $3.7240
Dec-22 $5.7457 $0.0766 $4.7140
Jan-23 $3.3975 $0.0749 $4.5760
Dec-23 $2.6183 $0.0800 $3.9720
Jan-24 $3.3040 $0.0853 $3.8540
Feb-24 $1.7871 $0.0779 $4.0440


Index information is reflected on date listed and is not updated with DOE revisions.

The above prices are quoted by the Department of Energy on its web site:
Diesel: http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMD_EPD2D_PTE_NUS_DPG&f=M
Gas & Electric: STEO_m_Gas & Electricity.xls
 

Calculation – How Surcharges are Calculated

The energy surcharge reflects the increase in costs for natural gas, electricity, and diesel fuel as compared to the average prices of these costs in 2007. For example, the average prices in February 2024 and average prices for 2007 for these commodities were:

February 2024 2007 Base Price Dollars per Unit
Natural Gas $1.7871 $7.1830 Henry Hub, 000’s of cubic feet (mcf)
Electricity $0.0779 $0.0635 US Industrial; Kilowatt-hours (KWh)
Diesel $4.0440 $2.8820 US retail, per gallon

Monthly prices are available on the DOE web site approximately the middle of the following month. When known, such prices will apply to the calculation for products shipped in the next following month. For example, prices for February 2024 are posted on the DOE web site in mid-March, and such February prices will apply to the energy surcharge calculation for all scheduled shipments in April 2024.

For each commodity, the change in price for each month (compared to the 2007 base average price) will be multiplied by a usage factor for each commodity for (a) 6xxx alloys products and (b) all other alloy products. Those factors will remain constant and are:

Usage per
pound
6xxx Alloys Other Alloys Units
Natural Gas 0.0063 0.0086 mcf / pound
Electricity 0.4371 1.1704 KWh / pound
Diesel 0.0048 0.0048 gallons / pound

Continuing with the example above, orders scheduled to ship in April 2024 will reflect the following energy surcharge:

6xxx Alloys Example: February 2024 DOE prices applied
to April 2024 Orders
Natural Gas Electricity Diesel Fuel
February 2024 Prices $1.7871 $0.0779 $4.0440
Base 2007
Average Prices
$7.1830 $0.0635 $2.8820
Difference -$5.3959 $0.0144 $1.1620
Usage Factor per lb 0.0063
(mcf/lb)
0.4371
(kwh/lb)
0.0048
(gal/lb)
Dollars per pound $0.0000 $0.0063 $0.0056 WAIVED
(a) (b) (c) (a+b+c)
Other Alloys* Example: February 2024 DOE prices applied
to April 2024 Orders
Natural Gas Electricity Diesel Fuel
February 2024 Prices $1.7871 $0.0779 $4.0440
Base 2007
Average Prices
$7.1830 $0.0635 $2.8820
Difference -$5.3959 $0.0144 $1.1620
Usage Factor per lb 0.0086
(mcf/lb)
1.1704
(kwh/lb)
0.0048
(gal/lb)
Dollars per pound $0.0000 $0.0168 $0.0056 WAIVED
(a) (b) (c) (a+b+c)

* all 3xxx, 4xxx, 5xxx, 2xxx and 7xxx series alloys

For convenience, the attached worksheet will allow the calculation of the energy surcharge for historical months or projected months, as the surcharge may apply to pounds shipped. Inputs required are the relevant monthly prices for natural gas, electricity, and diesel fuel as well as the pounds of 6xxx alloy or other alloy products.
 

Explanation – Why have we implemented an energy surcharge?

During 2008, costs for natural gas, electricity and diesel fuel increased dramatically over the prior year. While Kaiser Aluminum absorbed increases over previous years, the escalation required us to adjust our pricing accordingly via the implementation of a surcharge.

We will pass on increases in these costs above a baseline of 2007 levels and concluded that a surcharge is the best vehicle to address this issue. We maintain the data and tracking mechanisms used to support the surcharge on the Kaiser Aluminum Web Site to allow our customers to regularly monitor these commodity costs as they relate to their products.