TVA: Utility rates to drop four percent

TUPELO – It’s not much, but the 4 percent utility decrease set to take effect July 1 might afford you that extra monthly mocha cappuccino.
Tennessee Valley Authority announced Friday it will again trim electric rates, resulting in a 4.1 percent drop in wholesale power charges to TVA distributors throughout the southeastern United States.
Both Tupelo Water amp& Light and Tombigee Electric Power Association buy from TVA, and both will pass on the rate reductions to their customers.
“We don’t plan to withhold anything,” said TEPA Manager Bill Long.
The reduction will shave between $2 to $5 from the typical residential customer’s monthly bill, according to a TVA press release.
It also brings rates back in line to where they were before the power provider’s historical fuel-adjustment rate increase late last year. In October, TVA raised rates 20 percent, causing the average household bill to rise about $20 a month.
The current decrease is the third this year: In January, TVA cut rates 6 percent. In April, it cut another 7 percent.
TVA reviews its rates each quarter.
“We’ve just about wiped the fuel costs out with these reductions,” said Tupelo Water amp& Light Manager Johnny Timmons.
TVA sells power to 158 distributors in Tennessee, Alabama, Mississippi, Kentucky, Georgia, North Carolina and Virginia. Together, they serve roughly 8.7 million customers.
Contact Emily Le Coz at 678-1588 or emily.lecoz@djournal.com.

 

Emily Le Coz/NEMS Daily Journal