There is good news for some East Central Alabama residents, as lower power bills are expected as Tennessee Valley Authority begins its new fiscal year. The utility’s board raised rates when it met last month, but reduced the fuel adjustment charge. Although that fee can now be altered monthly, the combined result for most electricity users will be at least an initial reduction in what they pay. TVA will raise base rates by 8% effective Thursday, but an 11% decline in fuel adjustment charges should offset that at least initially. The decision will impact about 9 million people receiving electricity from TVA in Tennessee, Alabama, Mississippi, Kentucky, Georgia, North Carolina and Virginia. For a household using 1,000 kilowatt hours per month, the rate increase will add $5.52 cents to the power bill, but fuel surcharge reduction will equal $7.36. Many electric membership cooperatives and municipal power companies purchase power from TVA and are expected to pass the rate changes along to their customers.
2009-09-30