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TVA to reduce FCA again

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Electric bills should reflect savings in December

By BEN DUDLEYThe Wilson Post

Wilson County Middle Tennessee Electric members will see their rates go down about four percent in December as TVA will reduce its Fuel Cost Adjustment for the sixth time since the first of the year.

However, the impact on member bills will depend on the amount of energy they use because the Fuel Cost Adjustment is a per kilowatt-hour charge. MTEMC based the four percent decrease on a 1,500 kilowatt-hour per month bill.

“If you have a 1,500 kilowatt-hour bill in November, but have a 2,000 kilowatt-hour bill in December,” said Todd Palmer, director of communications for MTEMC, “the bill may not show a decrease. That is because you used more electricity, so don’t be fooled.”

“In November, TVA changed its Fuel Cost Adjustment from a quarterly to a monthly calculation,” MTEMC’s Chris Jones said. “TVA officials have said this will allow for more accurate forecasting of fuel and purchased power costs and less dramatic swings in the FCA charge.”

Beginning Dec. 1, the FCA will decrease from -0.322 cents per kilowatt-hour to -0.689 cents per kilowatt-hour.

TVA cites the continued FCA decreases as a result of higher than planned hydro generation, which has reduced the demand for more expensive resources; lower than expected sales; and continued lower prices for fuels like coal and natural gas, which are used to produce electricity.

“The drought that plagued the Southeast over the past two years really hurt hydro generation because the water level was so low,” said Palmer, “but with all the rain we have had this year, TVA was able to run their hydro generators more and produce more energy. This allowed them to shop for other fuels less often.”

For more information, visit www.mtemc.com. To find out how to lower your bill even further, click on “On-line Home Energy Evaluation” on the right side of the home page under Hot Topics.

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