TVA To Reduce FCA Dec. 1, MTEMC Member Bills Decrease
Wednesday, November 25, 2009 11:57 am
MTEMC 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.
“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.