TVA power bills will decline next month due to a drop in the utility’s monthly fuel cost adjustment due to cheaper natural gas and the price of purchased power.
TVA said the fuel-cost portion of its bills will decline by 3.9 percent in August to 2.126 cents per kilowatt-hour. Next month’s fuel cost adjustment is down by 12.6 percent from a year ago, although increases in TVA’s base rate and local power company price additions have offset most of that decline.
“The decrease is driven by lower forecasted natural gas and purchased power rates than in prior years,” TVA spokesman Scott Brooks said. “This is despite higher than average temperatures in June.”
Consumers are paying about the same or less for TVA fuel than two years ago, Brooks said.