Power rates to drop in March

The Tennessee Valley Authority is cutting the fuel cost adjustment on its electric bills next month by 3.4 percent, saving the typical Chattanooga residential power user $1.08 on his or her March bills compared to the current rate.

TVA spokesman Scott Brooks said electric rates in the Tennessee Valley next month will fall to the lowest rate since November. The decline reflects the milder weather and the drop in coal prices, Brooks said.

TVA's board of directors, which meets today in Chattanooga, usually adjusts its base rates once a year in October. But the fuel-cost portion of TVA charges are adjusted each month, based upon fuel prices and the type of generation or purchased power used by TVA.

Brooks said next month's fuel costs are 13 percent lower than the average March of the past three years.

Compared with a year ago, EPB electric rates next month will average 6 percent less even after TVA raised its base rates by 1.6 percent in October. The cheaper power rates will save the typical Chattanooga household that uses 1,441 kilowatthours of electricity $9.20 next month compared to what the same homeowner paid a year ago.

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