published Wednesday, April 13th, 2011

TVA cuts fuel cost adjustment

Heavy rains in March will help bring some relief in May for electricity users in the Tennessee Valley.

TVA announced Wednesday that abundant hydroelectric generation from rain-swollen reservoirs will cut the fuel cost adjustment next month by 0.4 percent. TVA spokesman Scott Brooks said the typical residential electricity user should save between 20 cents and 50 cents on their May power bill because of the reduction.

“Our hydro generation in March was 20 percent over what was forecast because of the wetter weather,” Brooks said.

The National Weather Service said rainfall in Chattanooga last month totaled 11.77 inches, or nearly double the normal 6.19 inches of precipitation for March.

Hydro is TVA’s cheapest source of power an is generated from TVA’s 29 hydroelectric stations along the Tennessee River and its tributaries.

TVA cut its fuel cost adjustment this month by 1.4 percent, but even with two successive months of lower rates the price of TVA power next month will still be more than 10 percent above the year-ago level.

TVA adjusts its price of electricity every month, in part, to reflect changes in the cost of coal, natural gas, uranium and purchased power under its fuel cost adjustment.

March was a very good month for hydro genera. Up 20 percent over forecast. We had a wetter than expected month in march that was good for our fuel costs.

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