The typical household electric bill will drop by 50 cents to $1 next month to lower fuel costs and higher hydroelectric power generation, TVA announced today.
The monthly fuel rate adjustment in February will be the eight cut in the past year for the federal utility. TVA spokesman Scott Brooks said the new rate should reduce the residential monthly bill by about a half percent from what it otherwise would be under the current rate.
TVA boosted its rates by more than 30 percent in 2008 when soaring fuel expenses and the drought pushed up the fuel cost adjustment. Since then, most of that increase has been offset by the recession-induced drop in fuel expenses and the end of the drought.