The fuel cost adjustments made each month by the Tennessee Valley Authority will fall next month to the lowest December level since TVA began its fuel rate adjustments to bills seven years ago.
TVA spokesman Scott Brooks said the overall system average fuel rate for December is approximately 14% lower than the three-year average December fuel cost.
Brooks said the drop in fuel costs next month reflects the cheaper price of natural gas and other fuels and higher expectations for hydro generation in December due to the above-average rainfall through most of 2019.
TVA’s 29 power-generating dams, which are “fueled” by rainfall runoff in the Tennessee Valley, produce about 10% of TVA’s overall power.
“This is actually the lowest December fuel cost since at least 2012, when we started the current calculations,” Brooks said.