TVA increases July's FCA 2.3 percent

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

“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 members use,” MTEMC Communications Coordinator Todd Palmer said. "It looks to be about a 2.3 percent increase from last month."

The FCA will move from June's rate of 0.206 cents cents per kilowatt-hour to 0.420 cents per kilowatt-hour.

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 June 16, 2010.

 

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