TVA power rates to rise next month

TVA power rates to rise next month

November 14th, 2012 by Dave Flessner in Business Around the Region

Tennessee Valley Authority headquarters and TVA logo

Photo by Miranda Harple

Chattanooga motorists may be filling up for less, but the price of electricity will go up again next month due to higher fuel costs to generate power in the Tennessee Valley.

The Tennessee Valley Authority said Tuesday that its monthly fuel cost adjustment for December will boost the price of electricity at the retail level in Chattanooga nearly 0.7 percent. For the typical Chattanooga household, the monthly fuel increase will boost power rates by $1.01 a month to $152.44, EPB Chief Financial Officer Greg Eaves said.

The fuel cost adjustment is the eighth such monthly increase in the past nine months for TVA.

"As we head into winter, sales are expected to increase, causing us to rely on more expensive supply sources," TVA spokesman Scott Brooks said. "Rising gas prices continue to place pressure on fuel expenses."

Despite the increase in fuel costs to generate electricity, the price of gasoline continues to decline.

The average price of a gallon of gasoline in Chattanooga fell on Tuesday to $3.15 a gallon -- down 38 cents per gallon from a month ago and still 7.2 cents a gallon below the price of a year ago, according to the AAA fuel gauge survey.

The AAA survey of service stations found that Chattanooga gas prices, on average, were 29 cents per gallon below the U.S. average.

Contact Dave Flessner at dflessner@timesfreepress.com or at 757-6340.