TVA says power rates to drop again in December

photo The Tennessee Valley Authority offices are located on Market Street in Chattanooga.

Electricity rates in the Tennessee Valley will drop in December for the third consecutive month due to the seasonal decline in what TVA pays for fuel and purchased power.

"This decrease in the wholesale total monthly fuel cost is due to significantly lower fuel costs for September; mild temperatures, lower sales, and higher hydro generation," TVA spokesman Scott Brooks said in a statement today.

The typical residential electric user in Chattanooga will save 82 cents a month under the new rates, cutting the typical EPB monthly bill to $146.04, EPB Chief Financial Officer Greg Eaves said.

TVA rates next month will average nearly 4 percent less than a year ago due to the recession-induced decline in the prices of coal, natural gas, oil and purchased power over the past year.