The TVA headquarters building is located in downtown Chattanooga.With the dog days of August losing their bite, electricity users in the Tennessee Valley will get a break on their power bills next month.
But the 1 percent drop in power rates in September will likely be reversed in October when TVA plans to raise its base rates even more with the start of its next fiscal year.
TVA announced today that because of milder temperatures and less power demand expected in September, the utility’s fuel cost adjustment will be lowered next month, cutting wholesale power rates by 1 percent. For most residential electricity users in the Tennessee Valley, the rate change will cut the monthly power bill from 50 cents to $1.50 in September.
“Because September’s power demand is historically lower than August demand, TVA expects to generate less electricity to meet the region’s needs,” TVA spokesman Scott Brooks said in a statement today. “This means lower overall fuel expenses and less purchased power.”
TVA adjusts its rates each month to reflect the changing costs of coal, natural gas and purchased power used to meet its power demands.