Electric rates in the Tennessee Valley will rise next month for the first time since October 2008.
TVA announced today that its monthly fuel cost adjustment in March will push up power rates for the average residential electricity user in the Valley between $2.50 and $5.50 a month, depending upon usage levels.
"Colder than normal weather in January increased sales and TVA fuel costs, which reduced the amount of credit consumers will see compared to previous months on the fuel cost adjusted portion of their power bill," TVA said in a statement posted on its Web site today.
For billing periods beginning March 1, TVA's wholesale Fuel Cost Adjustment will change from the current credit of 0.861 cents per kilowatt-hour to a credit of 0.552 cents per kilowatt-hour.
TVA, which serves more than 8 million persons in seven states, adjusts its electricity rate each month to reflect changes in what it pays for coal, natural gas and purchased power.