Friday, August 30, 2013
Electric Rates Lowered over 3% for September Bills
Huntsville Utilities electric customers will pay a little less for power next month thanks to a reduction in TVA fuel costs.
The Tennessee Valley Authority (TVA) announced this week that they were lowering their monthly Fuel Cost Adjustment (FCA) for the month of September which will mean customers will pay less for power.
For Huntsville Utilities, the residential electric rate for September will be $0.08469 for the first 1400 kWh used and $0.09283 for all usage over 1400 kWh.
HU customers who use 1400 kWh of electricity will pay $118.57 compared to $122.33 last month. This is just over a 3% reduction.
A Fuel Cost Adjustment is a variable energy rate that can fluctuate as TVA’s fuel and purchased power costs rise and fall. In 2005, the price of natural gas, oil and coal used to generate electricity skyrocketed. Since then, TVA has found it difficult to predict the amount of revenue that is required to cover the cost of producing power. The Fuel Cost Adjustment allows TVA to more quickly match costs with revenue and avoid implementing permanent rate increases. The monthly FCA directly affects the rates that all TVA distributors pay for the electricity they provide for customers.
Huntsville Utilities’ customers pay for electricity at a rate well below the national average. According to the U.S. Department of Energy’s Energy Information Administration, the average national electric rate is over 12 cents per kWh ($0.1254).
Huntsville Utilities is a publicly-owned, not-for-profit utility serving over 175,000 customers with low-cost electricity.
CONTACT: HU Public Relations Office