Abundant rains and cheaper natural gas will hold down the cost of electricity next month.
The fuel cost portion of electricity bills will drop by 7.1 percent in December, the Tennessee Valley Authority said today. For the typical Chattanooga residential customer of EPB, the drop in the monthly fuel cost adjustment will cut December electricity bills by $2.27 from what it would otherwise be without the rate adjustment.
“The overall system average fuel rate is approximately 14 percent lower than the three-year average December fuel cost adjustment,” TVA spokesman Scott Brooks said. “The decrease is primarily due to higher expectations for hydro generation and lower natural gas rates compared to prior years.”
So far this year, rainfall in Chattanooga has already reached the usual annual total. Through Sunday, precipitation in Chattanooga totaled nearly 52 inches, or 7.23 inches more than normal for this time of year. Heavier rains allow TVA to generate more power from the utility’s 29 power-generating dams.
Natural gas prices also have dropped about 40 percent from a year ago, providing cheaper fuel to power TVA’s combustion turbines.