The Tennessee Valley Authority will cut power rates another 3.5 percent next month, saving the average residential electricity user anywhere from $2 to $4.50 on their February light bill.
For the fifth time in the past six months, TVA announced today it will cut its monthly fuel cost charge to reflect the cheaper cost of generating power for the federal utility. TVA spokesman Scott Brooks said TVA is benefiting from more abundant hydroelectricity generation from above-average rain, the decline in natural gas prices and a milder winter.
"We had a milder December with more rain, which means we had to purchase less power and got more hydro generation," he said.
The power produced at TVA's 29 hydroelectric dams is the cheapest power source for TVA. Power costs also are being cut by the decline in the price of natural gas, which fell this week to the lowest level in more than two years in trading on the New York Mercantile Exchange.