As lower temperatures begin to boost heating bills, consumers should get a price break this winter, whether they heat with electricity or natural gas.
The Tennessee Valley Authority announced Monday it will cut its electricity rates in December for the second consecutive month due to falling prices for fuel and purchased power.
Chattanooga Gas Co., which cut its rates by 18 percent in October, estimates most gas users will pay the lowest rates this winter in at least four years.
The typical Chattanooga household that relies upon electric heat will save nearly $4 next month under the latest 3.5 percent cut in TVA’s monthly fuel cost adjustment, EPB officials said Monday. The December rate cut follows an even bigger 5 percent wholesale rate reduction this month by TVA, although the autumn cuts still don’t offset eight months of previous fuel cost increases.
Chattanooga Gas estimates its average household saved $2.35 last month thanks to the October rate cut and should save even more through the winter months. The commodity price of natural gas, not including the delivery expenses for the fuel, is down 16 percent from a year ago and is priced 46 percent below the peaks reached in the fall of 2008.