TVA’s Fuel Cost Adjustment increases 1.2 percent in August

MTEMC members will see their rates go up 1.2 percent when they get their bills August, as the Tennessee Valley Authority has increased its Fuel Cost Adjustment (FCA).

“The actual percentage change in members’ bills will differ depending on the amount of energy members use; however, it looks to be about a one percent change on average,” MTEMC Communications Coordinator Todd Palmer said.

The FCA will move from July’s rate of 0.420 cents per kilowatt-hour to 0.529 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 July 19, 2010.

 

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