The Tennessee Valley Authority will cut power rates another 3.5 percent next month, saving the average residential electricity user anywhere from $2 to $4.50 on their February light bill.
For the fifth time in the past six months, TVA announced today it will cut its monthly fuel cost charge to reflect the cheaper cost of generating power for the federal utility. TVA spokesman Scott Brooks said TVA is benefiting from more abundant hydroelectricity generation from above-average rain, the decline in natural gas prices and a milder winter.
“We had a milder December with more rain, which means we had to purchase less power and got more hydro generation,” he said.
The power produced at TVA’s 29 hydroelectric dams is the cheapest power source for TVA. Power costs also are being cut by the decline in the price of natural gas, which fell this week to the lowest level in more than two years in trading on the New York Mercantile Exchange.
Dave Flessner is the business editor for the Times Free Press. A journalist for 35 years, Dave has been business editor and projects editor for the Chattanooga Times Free Press, city editor for The Chattanooga Times, business and county reporter for the Chattanooga Times, correspondent for the Lansing State Journal and Ingham County News in Michigan, staff writer for the Hastings Daily Tribune in Nebraska, and news director for WCBN-FM in Michigan. Dave, a native ...