TVA: Power bills to rise in Tennessee Valley in April

TVA: Power bills to rise in Tennessee Valley in April

March 13th, 2012 by Dave Flessner in Business Around the Region

The TVA headquarters building is located in downtown Chattanooga.

The TVA headquarters building is located in downtown...

Photo by Angela Lewis /Times Free Press.


3 -- Percent increase in wholesale rates under the April fuel cost adjustment

$3.25 -- Extra cost of the fuel cost adjustment next month for typical EPB customer

$144.26 -- Average monthly bill for EPB customer who uses typical 1,461 kilowatthours a month

2.2 -- Percent increase in April 2012 compared with a year ago

Sources: TVA, EPB

The wholesale price of electricity in the Tennessee Valley will rise 3 percent in April, costing the typical Chattanooga homeowner another $3.25.

TVA announced Tuesday that it will raise its fuel cost allowance in April to reflect the expected drier-than-usual month, which will reduce TVA's cheapest power source from its hydroelectric dams.

"With less hydro generation in the forecast, purchased power costs are expected to be higher," TVA spokesman Scott Brooks said.

Despite the April increase, TVA's overall rates remain comparable to those of a year ago.

TVA adjusts its wholesale rates each month to reflect the changing price of fuel and purchased power. TVA raised its base rates by 2 percent in October, but the utility's monthly fuel cost allowance has dropped in eight of the past 12 months.

"Any time rates are on the increase, it's not good for jobs and production," said John Van Mol, director of the Tennessee Valley Industrial Committee, which represents the biggest industrial power users in TVA's seven-state region. "But the bright spot is that rates are fairly consistent with where they were a year ago."