Rising Fuel Costs To TVA Passed On To Customers
Knoxville, TN – The Tennessee Valley Authority is increasing its fuel adjustment charge. The utility said the hike will raise residential power bills between $3 and $6.50 per month, depending on how much electricity is used.
Higher fuel prices this year are eating into a fuel adjustment credit that TVA has applied to the rate because of lower fuel prices last year. It's from about a half cent to a fifth of a cent per kilowatt hour.
TVA says that amounts to a 5.9 percent increase in what residential customers will pay TVA for the cost of the utility buying fuel. That follows a 5.3 percent increase for March.
TVA uses fossil fuels - coal, oil and natural gas - to generate about half of its electricity. When those costs rise, TVA's costs increase.
The other half of TVA electricity comes from its nuclear plants and dams.
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