Despite higher prices at the gas pump, the cost of power in the Tennessee Valley will dip again next month with the fuel cost adjustment for May the lowest in three years.
The Tennessee Valley Authority continues to benefit from above-average rainfall and more nuclear power generation, which TVA spokesman Scott Brooks said combine to cut the average fuel rate for next month about 10 percent below the three-year average for May.
Power prices drop
In Chattanooga, the monthly electric bill for a household using 1,295 kilowatt hours of election is declining:* $139.35 in May 2019* $139.65 in April 2019* $140.70 in May 2018Source: EPB
Last year's record high rainfall and precipitation so far in 2019 - more than 10 inches above normal - are boosting power output from TVA's cheapest source of electricity generated at its 29 power-producing dams on the Tennessee River and its tributaries.
TVA's seven nuclear power plants also rely upon cheaper fuel and natural gas prices. The spot price of natural gas remains only about half of the level reached five years ago.
"This is the second lowest May (for fuel cost adjustments) since we started the current calculations in 2013, Brooks said.
In Chattanooga, the cut in the monthly fuel cost adjustment will trim the average monthly power bill by about 40 cents for the typical household using 1,295 kilowatthours of power compared with this month's bill.
EPB says its residential rates are down 0.7 percent from a year ago even after TVA raised its base rates about 1.5 percent last fall. The typical homeowner should save about $1.05 on the May bills in 2019 compared with a year ago, assuming identical power consumption.
But while electricity is getting cheaper, the price of gasoline continues to rise.
Chattanooga gas prices rose last week by 0.3 cents per gallon to $2.51 per gallon, according to GasBuddy's daily survey of 170 stations released Monday. Gas prices in Chattanooga are now 13 cents per gallon higher than a month ago, but only 2.1 cents per gallon higher than a year ago.
Despite the price hike at the pump so far this year, Chattanooga gas prices still average 37 cents a gallon below the U.S. average price of $2.88 per gallon for regular fuel.
"This spring certainly has brought furious price increases at faster paces than we've seen in past years," said Patrick DeHaan, head of petroleum analysis for GasBuddy. "Perhaps the best news for motorists is they may catch a break in June as prices moderate slightly as refiners finish maintenance and boost production."
Contact Dave Flessner at dflessner@timesfreepress.com or at 757-6340.