Chattanooga gas prices drop, but home energy prices by TVA to hit record high in August

Staff Photo by Matt Hamilton / A motorist pumps gas at the Sam's Club Fuel Center on Lee Highway on March 7 in Chattanooga.

Average gasoline prices in Chattanooga dropped another 17.5 cents a gallon in the past week to dip below $4 a gallon for the first time this summer, according to GasBuddy's survey of 170 stations in Chattanooga.

But while motorists are feeling less pain at the pump, homeowners are still feeling the heat from higher prices for electricity used to power air conditioners during the summer. Home energy prices continue to rise with the monthly fuel cost adjustment from the Tennessee Valley Authority hitting a new high, boosting Chattanooga electricity prices next month by nearly 27% above what they were a year ago.

With higher temperatures and increased natural gas and purchased power costs, electricity bills in Chattanooga will increase for many homeowners to record summertime highs in August. EPB said Monday the typical residential customer that uses an average of 1,295 kilowatt-hours of electricity a month will pay a monthly power bill of $159.36