Electric rates are heating up with the summertime temperatures.
The Tennessee Valley Authority said Tuesday that it will raise its wholesale power rates in July by another 3 percent, boosting the typical residential electric bill for most Chattanoogans by $2.80 a month, and 2.3 percent at the retail level.
Next month’s increase will be the fifth consecutive monthly hike in TVA’s fuel-cost adjustment, reflecting the end of credits accumulated when fuel prices plummeted during the recent recession.
“Part of this increase reflects the end of the credits we built up last year, and part of it is due to our expectation of higher fuel prices this year during the summer months,” TVA spokesman Scott Brooks said.
With the July increase, TVA electric rates this summer will be slightly higher than they were a year ago.