Sunday, September 18, 2011

TVA Rate Impacts - October 2011

TVA implemented a new rate structure on April 1; the new structure includes seasonal rates in addition to a monthly Fuel Cost Adjustment.  The TVA board recently also approved a wholesale base rate increase of 3.08%. 
NES evaluates the impacts that the TVA rates have on NES customers’ bills each month, and we have recently completed the bill effects evaluations for the October 2011 bills.  The average residential home with 1,300 kWh usage will have a bill of $130.86, approximately a 3.3% decrease from last month.   There are two factors which contribute to lower rates in October despite TVA’s base rate increase:  1) the seasonal transitional rate and 2) a reduction in the fuel cost adjustment.  TVA’s base rate for the month of October is the “transitional rate” (as opposed to the summer rates that apply in September).  The monthly Fuel Cost Adjustment for residential customers for the month decreased from 0.850 cents per kWh to 0.503 cents per kWh. 
TVA’s rates are increasingly complicated. 
Please let me know if you have any questions and I will work to get them answered.  Thank you.

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