TVA to reduce FCA Nov. 1, member bills decrease


From Post staff reports

MTEMC members will see their rates go down about one percent in November as TVA will reduce its Fuel Cost Adjustment for the fifth time since the first of the year.  While the average impact to member bills will be about one percent or $1.50 less, amounts consumers save will depend on the amount of energy they use because the fuel cost adjustment is a per kilowatt-hour charge.

“Last month, TVA’s Board approved a proposal to change the Fuel Cost Adjustment mechanism from a quarterly to a monthly calculation,” MTEMC’s Chris Jones said. “TVA officials say this will allow for more accurate forecasting of fuel and purchased power costs and less dramatic swings in the FCA charge.”

Beginning Nov. 1, the FCA will decrease from -0.219 cents per kilowatt-hour to -0.322 cents per kilowatt-hour.

TVA cites the continued decreases as a result of the stabilization of prices on fuels used to produce power, like coal and natural gas. Also, drought conditions have subsided this past year and abundant rainfall in the southeast has allowed TVA to fully restore it’s capabilities to produce hydropower, it’s cheapest generation source.