Tennessee Valley Authority’s sign is seen at the downtown complex.The Tennessee Valley Authority will boost its monthly fuel cost adjustment next month from the current rate, but fuel costs for TVA in July will still average 10 percent less than what they have over the past three years.
TVA spokesman Scott Brooks said fuel costs, which account for about a third of the typical monthly electric bill and fluctuate each month, will increase 4.7 percent in July from June, reflecting the normal increase in summertime consumption of more expensive, peak power sources to respond to higher temperatures and more air conditioning use. EPB also will boost rates 3.5 percent in July if directors of the Chattanooga electric utility approve EPB’s proposed budget for next year during the board’s June 26 meeting.
Brooks said fuel costs rose even more in previous years, but lower natural gas prices have kept fuel costs in check. Next month’s fuel cost adjustment is 19 percent below the fuel cost fee TVA imposed on its wholesale rates in July 2014.
“Fuel costs in March and June were 13 percent below the 3-year average,” Brooks said.