KNOXVILLE, Tenn. – After increases for eight months, the Tennessee Valley Authority will cut residential bills between $3.50 and $7 due to lower-than-projected fuel costs.
The change takes effect Nov. 1.
The nation’s largest public utility said in a statement Wednesday that in September, the prices of coal, purchased power and gas were 12 percent below the predicted level.
That helped to offset demand that was higher than projected and lower hydro generation than had been forecast.
Warmer than normal temperatures boosted sales in September by 6 percent above forecast but hydro generation was 31 percent lower than expected because of the lack of rain in the Tennessee Valley.
TVA adjusts the fuel portion of its power rates each month to reflect changes in the cost of coal, natural gas and purchased power. About half of TVA’s power supply comes from coal, oil and natural gas.
The 5 percent decrease in November follows a total 28 percent increase in the fuel cost adjustment since March.
The most recent increase, which took effect Oct. 1, was 6.4 percent. It was imposed to cover TVA’s extra expense during August, when the utility had to scale back generation at its biggest nuclear plant because it was pumping too much hot water back into the Tennessee River.
TVA supplies power to nearly 9 million people in Tennessee, Alabama, Mississippi, Kentucky, Georgia, North Carolina and Virginia.
The Associated Press