By The Associated Press
KNOXVILLE — The Tennessee Valley Authority’s monthly fuel cost will drop between $2 and $4.50 in February billings for average residential customers due to mild weather.
The Knoxville-based utility said Friday that for billing periods beginning Feb. 1, the total monthly fuel cost will decrease from the current 2.251 cents per kilowatt-hour to 1.996 cents per kilowatt-hour. That represents a 3.5 percent decrease in the average wholesale price.
The amount of decrease depends on usage levels.
TVA said the fuel cost is the lowest in almost two years and is due mostly to milder temperatures in December that allowed higher than expected, low-cost hydroelectric generation.
TVA is the nation’s largest public utility and supplies power to about 9 million people in Tennessee, Kentucky, Alabama, Mississippi, Georgia, North Carolina and Virginia.