| Lowest Gas Prices in Chattanooga |
| Chattanooga Gas Prices provided by GasBuddy.com |
The two-year decline in gasoline prices could be reaching an end, but Chattanooga motorists and homeowners continue to enjoy historically low prices for travel and the fuel-portion of their winter heating.
The March fuel cost adjustment for rates, effective today, is 10.7 percent less than a year ago. TVA spokesman Scott Brooks said TVA’s overall fuel costs are about 20 percent below the average of the past three years due to cheaper natural gas and coal and more abundant hydroelectric generation.
“Milder weather (which reduces expensive generating peaks) and lower prices for natural gas (used for power generation) are major factors in the March rate,” Brooks said.
Overall, electric rates in Chattanooga are still higher than a year ago due to base rate increases adopted last year by both the Tennessee Valley Authority, which supplies or buys electric power to serve its 7-state region, and the EPB, which distributes the TVA-generated power and bills more than 170,000 area homes and businesses for electricity.
EPB raised its rates 3.5 percent last July and TVA raised its rates another 1.5 percent in October.
As a result, even with lower fuel cost charges, the monthly electricity bill for a typical Chattanooga household that uses the average 1,461 kilowatthours will pay $150.30 this month for electricity, or 3.4 percent more than the $145.34 charge for the same amount of power in March 2015.
Despite higher electric prices, Chattanooga Gas Co. estimates the typical home owners heating with natural gas will pay about 10 percent less for fuel this winter than a year ago.
A survey released Monday by GasBuddy.com showed Chattanooga motorists also continue to enjoy cheaper gas than most of the country.
Average retail gasoline prices in Chattanooga fell 0.4 cents per gallon last week to an average $1.48 per gallon. Chattanooga gas prices, on average, were 26 cents per gallon below the U.S. average.
Gas prices remained Monday as low as $1.34 per gallon at a half dozen area stations, according to GasBuddy.com.
Including the change in gas prices in Chattanooga during the past week, local fuel prices at the end of February were 65.6 cents per gallon lower than the same day one year ago and a nickel lower than a month ago.
But a slight uptick in national gas prices last week and the coming springtime conversion to more expensive gasoline blends could signal higher prices at the pump.
“We knew it was inevitable. The eight-month decline in prices at the pump that brought the national average as low as $1.67 has come to an end,” said Gregg Laskoski, senior petroleum analyst for GasBuddy. “The ‘plateau’ or pause in price movement is now behind us as we’ve had a full week in which the national average has climbed steadily.”
Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340.