The monthly light bill should get cheaper next month, but electric rates in Chattanooga will still be up 5.2 percent from a year ago in February.
The Tennessee Valley Authority is cutting its monthly fuel cost adjustment next month, although TVA spokesman Scott Brooks said bills may still go up with higher usage if the weather turns colder.
EPB in Chattanooga said the typical residential bill for a household using the average 1,295 kilowatthours next month will be $1.39 cheaper, or 1 percent, less than in January. A year ago, households using the same amount of power paid $133.46, or $6.94 less.
"The overall system average fuel rate is approximately 4 percent higher than the three-year average February fuel cost," Brooks said. "This is primarily due to lower expectations for hydro generation resulting from the recent drought conditions."
Hydroelectric power generation from TVA's 29 power- generating dams produced about 18 percent more than was forecast in December. However, hydro power - TVA's cheapest source of electricity - was still only 71 percent of normal because of below average rain last year.
"We are still feeling the effects of below average hydro production," Brooks said.
Nonetheless, TVA customers said they are grateful for some reprieve in rates next month compared with this month.
"Rates going down is always a good thing," said Greg Williams, general manager for Appalachian Electric Cooperative in New Market, Tenn., and chairman of the Tennessee Valley Public Power Association. "It exemplifies the diversity of TVA's power portfolio. They really have the advantage of getting power from a variety of generation sources and, in so doing, they take advantage of adjusting power production based upon conditions and different prices for power at the time."
TVA rates are among the bottom quartile of all utilities but are still above some neighboring utilities in the South.
"Fuel prices are a little higher than they were a year ago, but we hope they continue to come down," said Pete Mattheis, an attorney for Nucor Steel and chairman of the Tennessee Valley Industrial Committee, which represents the biggest industries directly served by TVA. "Getting Watts Bar Unit 2 online last year should help as we move forward. We hope that helps TVA to maintain rates that are even more competitive."
Despite the high capital cost of nuclear power plants, fuel costs to operate nuclear plants is among the lowest of any form of generation.
Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340.