TVA announced on Thursday that the fourth-quarter Fuel Cost Adjustment (FCA), which goes into effect April 1, will decrease by about 7 percent.
What does that mean to you? Here's what TVA had to say...
Because the fuel cost adjustment is a per kilowatt-hour charge, amounts that consumers will save depend on the amount of energy they use. While savings will vary across the Tennessee Valley, residential consumers can expect a decrease that ranges from about $4 to $9 in their monthly power bills. Retail billing periods for TVA power distributors also vary, so some April bills will include March usage at the lower rate.
Overall, the decrease for the quarter will be about a 7-percent reduction on total average wholesale rates, and is a reduction of almost 40 percent from the current quarter’s fuel cost adjustment amount. For the quarter beginning April 1, the fuel cost adjustment will decrease about 0.5 cents per kilowatt-hour, from more than 1.3 cents to 0.8 cents per kilowatt-hour.
“In these economically challenging times, we are especially glad lower fuel costs will provide some relief in power costs to the consumers in the Tennessee Valley,” said TVA President and CEO Tom Kilgore. “Unusually cold weather this winter has meant higher consumption of electricity and higher power bills even for people who keep their thermostats low.”
Under the fuel cost adjustment, when the price of fuels used to make electricity decreases, the cost of electricity also decreases. Current economic conditions and increased rainfall also contributed to lower fuel and purchased power costs, Kilgore said.
To view the whole press release, visit the TVA website.
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