Wholesale electricity rates will rise another 1 percent in the Tennessee Valley next month, TVA announced today.
In its third consecutive increase in the monthly fuel cost adjustment, the Tennessee Valley Authority said its power rates will rise for the typical household about $1 a month, depending upon usage levels.
In an announcement today, TVA said the fuel cost adjustment credit that built up last year when the price of natural gas and coal fell more than projected is about used up.
“As the credit is reduced over the next two months, fuel cost adjustments will continue to increase slightly,” TVA said in its announcement.
In the first five months of the current fiscal year, the fuel cost adjustment dropped nearly 20 percent. But most of that decline has been offset by an increase in TVA base rates last fall and fuel cost increases in each of the past three months.