The abundant rains last month will help provide some rate relief in January on winter electricity bills.
The Tennessee Valley Authority announced Wednesday that wholesale power rates will drop 3.1 percent. Rainfall in the Tennessee Valley was 63 percent above normal during November, helping boost TVA's cheapest power source -- hydroelectricity generation from the utility's 29 power-generating dams.
"With hydroelectric generation that was almost 30 percent higher than expected, TVA was able to rely less on higher-cost generation sources," TVA spokesman Scott Brooks said. "It was a good month for rain."
In Chattanooga, EPB estimates the drop in the monthly fuel cost adjustment in January will cut the typical January residential power bill from $149.12 to $145.60.
Despite the $3.52 of monthly savings from the current rate, however, EPB's January rates for the typical residential customer will still be $6.86, or 4.7 percent above, January of 2010 because of base rate increases by TVA and EPB over the past year, EPB officials said.
"I'd like to see the rates even lower, but I also wish TVA would use greener sources of power like wind or solar," said Randy Newell, a Rossville resident who typically pays about $60 a month for electricity. "We try to conserve our power, but just like anybody we want it as cheap as possible."
TVA is cutting its coal-fired power generation and turning more to renewable sources like wind and solar, even though TVA officials say in the near term that is often more expensive.
"It seems expensive, but you've got to have power," EPB Customer Sue Gass said after paying her utility bill on Wednesday.
In its announcement of the January fuel cost adjustment, TVA also said lower demand is helping reduce the need to buy the most expensive power during peak periods.
TVA adjusts its power prices each month to reflect the cost of the fuel it buys or power in purchases to supply electricity to customers in parts of seven states.