TVA says fuel cost to drop about $1.50 in February

By The Associated Press

KNOXVILLE, Tenn. — The Tennessee Valley Authority’s fuel cost will drop in February and reduce bills by about $1.50 for residential customers.

A TVA statement Friday said the reduction will range from $1 to $2, based on usage.

The 1.5 percent decrease stems from a projection of milder weather. Knoxville-based TVA adjusts its fuel costs based on what it pays for coal, natural gas, reactor fuel and electricity supplied by other utilities.

The decrease follows a 1 percent monthly increase in TVA’s fuel cost for January. The fuel costs have increased by 16.8 percent since January 2009.

TVA supplies power to nearly 9 million people in Tennessee, Alabama, Mississippi, Kentucky, Georgia, North Carolina and Virginia.