The Tennessee Valley Authority will boost its wholesale electric rates by 1 percent in January, reversing a two-month decline in the utility’s monthly fuel-cost adjustment.
TVA spokesman Scott Brooks said today the colder weather in January will cause TVA to use more expensive fuel to generate power, resulting in the higher fuel-cost adjustment next month.
The increase will boost the average EPB residential monthly electric bill in January by $1.10, EPB Chief Financial Officer Greg Eaves said.
TVA cut its wholesale rates by 3.5 percent this month and by 5 percent in November due to lower fuel cost adjustments due to declining natural gas prices. But overall agency rates still remain 5.5 percent above a year ago due to fuel cost increases earlier this year.
TVA adjusts the fuel portion of its power rates every month to reflect the actual and anticipated costs of the coal, natural gas and purchased power used to generate its electricity.
For complete details, see tomorrow’s Chattanooga Times Free Press.