Electric rates will drop 2 percent next month in Chattanooga, reflecting another decline in the monthly fuel-cost adjustment by the Tennessee Valley Authority.
"The decrease is driven by lower forecasted natural gas and purchased power rates than in prior years," TVA spokesman Scott Brooks said.
The fuel cost portion of electric bills will be 13 percent lower in June than it has been for the last three June months, helping to lower average residential electricity bill in Chattanooga by $2.92 below the current rate and $5.32 below the year-ago level.
For the typical EPB residential customer, the lower rate will cut next month's electric bill from an average $150.84 in May to $147.92 last month, according to EPB.
TVA sets its base rates for electricity in October and adjusts the fuel portion of power bills each month based upon the cost of fuel and purchased power.