TVA’s Fuel Cost Adjustment to cause higher summer electric bills
MURFREESBORO, Tenn. (WSMV) - Middle Tennessee Electric announced members can expect higher than normal bills this summer as the Tennessee Valley Authority’s Fuel Cost Adjustment charge remains up, primarily to higher natural gas prices.
“As compared to last summer’s bills, we calculate the impact of the higher TVA charges to mean an average monthly increase of about $12 for residential members,” Middle Tennessee Electric CEO Chris Jones said in a news release. “If you consume more than an average amount to electricity, that amount will be higher; and if you consume less than average, it will be less. We wish that it were otherwise, but MTE has no control over the FCA. It is a direct pass-through, meaning that every peen we collect for this goes straight to TVA.”
TVA uses the FCA to help manage fluctuations in the costs of fuels it uses to generate electricity. The FCA has been steady for several years, but with global supply and inflation issues, the FCA has been higher the last several months.
“Increased natural gas prices is the biggest culprit,” Jones said. “TVA generates about 25% of its electricity by burning natural gas. Prices for natural gas are way up all over the world.”
Jones said Middle Tennessee Electric’s residential rates rank among the lowest in the nation, more than 25% below the national average. Minus the fuel cost adjustment, Middle Tennessee Electric’s energy charge has been virtually the same for the past 10 years. Middle Tennessee Electric has not had a rate increase to benefit the cooperative’s revenues in more than 15 years.
“All electric companies are seeing these issues from their suppliers,” Jones said. “Despite facing inflationary pressures, I’m proud to report our electric rates are even more competitive when compared to others, and we intend to keep it that way.”
Middle Tennessee Electric is the largest electric cooperative in the Tennessee Valley Authority region and the second largest in the United States, serving more than 750,000 Tennesseans via 320,000+ accounts covering nearly 2,200 square miles in 11 Middle Tennessee counties, primarily Rutherford, Cannon, Williamson and Wilson.
Copyright 2022 WSMV. All rights reserved.