Electricity rates will drop another six-tenths of a percent next month in the Tennessee Valley, leaving power rates about 2 percent below where they were a year ago.
TVA announced today that its monthly fuel cost adjustment will cut the fuel portion of the monthly light bill by about $1 for the typical residential electricity user, effective March 1. TVA spokesman Scott Brooks said the drop reflects the decline in prices for natural gas, coal and purchased power, which are now at the lowest level for TVA in two years.
The monthly fuel cost price cut is the fifth for TVA in the past six months.
"Most of the decrease is related to lower sales projections for March and, consequently, lower fuel cost expectations," Brook said. "Also, mild January temperatures resulted in lower sales, which helped to lower January fuel expenses."