Hot, dry weather pushes up TVA rates again

Electricity prices will rise in September for the seventh consecutive month, this time because of fuel costs pushed up by the hot, dry summer.

The average monthly power bill for Chattanooga homeowners will go up $2 under the fuel cost adjustment announced Friday by the Tennessee Valley Authority.

Since March, TVA’s combined fuel cost adjustments have pushed up electricity rates by more than 25 percent, reversing declines during the recession of the previous two years.

“TVA is now forcing the most vulnerable people to turn off their heating or cooling because they can’t afford these bills,” said Louise Gorenflo, the founder of the Solar Valley Coalition in Crossville, Tenn., and a member of an advisory group helping to prepare TVA’s long-range power plans.

“Energy costs are going through the roof and so are people’s energy dollars because too few homes are properly insulated in the Tennessee Valley,” she said.

TVA spokesman Scott Brooks said above-average temperatures boost demand and force the federal utility to buy more costly fuels and power supplies to meet the need. At the same time, below-average rainfall is cutting hydroelectricity generation.

“Hydro generation is our least expensive source of power,” Brooks said.

Replacing the hydro power and supplying higher energy demand meant buying more coal, natural gas and other electricity during July and so far in August.

TVA said power sales in July were 9 percent higher and fuel costs were 25 percent higher than projected.

“We don’t like these increases, but we understand that TVA has to buy more fuel and purchased power with the higher demand,” said Donald E. Huffman, executive director of the Associated Valley Industries, a Chattanooga-based trade group representing major industries that buy power from TVA distributors.

Stephen Smith, executive director of the Southern Alliance for Clean Energy, said TVA customers should brace themselves for higher fuel and energy costs in the future.

“There are two parts to your electric bill — rates and consumption. One of the best ways to offset these higher fuel cost adjustments is to figure out how to be more efficient and use less electricity,” Smith said.