News Release

HU Customers to Pay Less for Power in April

March 30, 2009

Huntsville Utilities customers will see a decrease in their power bills when the latest TVA rate reduction goes into effect in April.

The Tennessee Valley Authority Board voted for a reduction in wholesale power rates that are charged to the distributors of TVA power. TVA supplies all of the power distributed by Huntsville Utilities. HU is passing the TVA rate reduction directly to customers.

On average HU residential customers will see a savings of just over $8.00 each month. Over the past five years, the average residential monthly electric usage was 1467-kilowatt hours. Under the current rates, a customer’s bill would be $131.24. With the new rates, a customer’s bill would be $123.17. This includes a $5.77 monthly customer charge.

The new rates for HU customers will be $0.07966 for the first 1400 kilowatt hours used and $0.08767 for all kilowatt hour usage over 1400 kWh. This represents a 6.1% decrease in the rates.

Utility bills with the new rate will be arriving at homes this week. For a number of customers, part of their March power usage will be billed at the new lower rate.

This is the second consecutive quarter that TVA has decreased the cost of power to its distributors. For every dollar a HU customer pays for electricity, approximately 14 cents stays with HU to maintain and operate the system and 86 cents goes to TVA for purchased power.

Huntsville Utilities is a Publicly-Owned, Not-for-Profit utility serving over 159,000 customers in Huntsville, Madison County and northern Marshall County.