Higher electric prices ahead for Chattanooga homeowners, businesses

TVA fuel cost adjustments to push up electricity prices

Staff photo / An EPB "smart meter" on a home in Red Bank is shown in 2014.

Chattanooga motorists may be benefiting from the recent drop in gasoline prices, but homeowners should brace themselves for higher energy bills at home this winter.

The price of electricity will increase again next month and be up by more than 11% from a year ago in Chattanooga during October, according to EPB. A new forecast by the U.S. Energy Information Administration last week predicts electric rates nationwide will continue to increase in 2023 after rising an average 7.5% this year.

Russia's invasion of Ukraine and a surge of U.S. exports to energy-starved Europe cut off from most Russian oil and gas supplies are driving up the price of natural gas -- the major power source for generating electricity, according to a new government report.

The Tennessee Valley Authority is increasing its fuel cost adjustment again in October to a rate nearly double the average price for fuel in the same month over the previous three years.