TVA Fuel Cost Adjustment increases June 1

MTEMC members will see their rates go up about four percent when they get their bills in June, as the Tennessee Valley Authority has increased its Fuel Cost Adjustment (FCA) for the fourth month in a row.

“This will be the first time this year the FCA has increased and not been a credit.,” MTEMC Communications Coordinator Todd Palmer said, “The FCA credit that members have received since October has now been used up.”

The credit was created when fuel costs in 2009 were lower than TVA had forecasted.

The FCA will move from May’s rate of -0.136 cents cents per kilowatt-hour to 0.206 cents per kilowatt-hour.

“Because the Fuel Cost Adjustment is a per kilowatt-hour charge, the actual percentage change in members’ bills will differ depending on the amount of energy they use,” Palmer said.

The FCA is a billing mechanism TVA uses to help recover largely uncontrollable fuel and purchased power costs. Since TVA is the power supplier for Middle Tennessee Electric and the FCA is a TVA charge, all of the charge collected from Middle Tennessee Electric members goes back to TVA.

Posted on May 18, 2010.

 

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