The wholesale price of electricity in the Tennessee Valley will rise 3 percent in April, reversing most of the rate decreases of the past two months.
TVA said today the monthly fuel cost adjustment is rising next month to reflect the drop in hydroelectric generation, TVA’s cheapest power source. TVA estimates the increase in the fuel cost adjustment will add anywhere from $2 to $4 to the typical ratepayer’s bill in April.
TVA adjusts its wholesale rates each month in response to changes in the cost of fuel and purchased power. The mild and wet winter cut fuel costs below normal this winter, cutting fuel costs in each of the past three months.
“With less hydro generation in the forecast, purchased power costs are expected to be higher,” TVA said in a statement announcing the monthly fuel cost increase.
Despite the April increase, TVA’s fuel cost adjustment is still below the level of a year ago. In the past 12 months, fuel cost adjustments have lowered rates in eight months and raised rates in the other four.
Dave Flessner is the business editor for the Times Free Press. A journalist for 35 years, Dave has been business editor and projects editor for the Chattanooga Times Free Press, city editor for The Chattanooga Times, business and county reporter for the Chattanooga Times, correspondent for the Lansing State Journal and Ingham County News in Michigan, staff writer for the Hastings Daily Tribune in Nebraska, and news director for WCBN-FM in Michigan. Dave, a native ...