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TVA Rates To Drop Again Due To Reduced Fuel Costs

Knoxville, TN – Abundant rainfall has again helped to reduce the Tennessee Valley Authority's fuel costs and that means a monthly savings of between 50 cents and $1 for typical residential customers, starting Feb. 1.

TVA began the fiscal year Oct. 1 with an 8 percent general rate increase but because of reduced fuel adjustment costs, customers are still paying less than a year ago.

The fuel cost reduction is the fifth straight since TVA converted to a monthly calculation. TVA uses the fuel cost adjustment to help recover fluctuating fuel and purchased power costs.

TVA is the nation's largest public utility with nearly 9 million consumers in Tennessee, Alabama, Mississippi, Kentucky, Georgia, North Carolina and Virginia.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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