TVA says you can bank on a steep drop in energy fuel cost next month

The bottom line is that fuel costs will drop 33% in September

NASHVILLE, Tenn. (WDEF)  — We’ve got some good news for power customers who have been feeling the pain from those TVA fuel cost surcharges to your power bill.

They should take a big dip in September.

The surcharges haven’t just been about the summer heat.

They also have spiked because of inflation.

“The higher fuel rate is mostly due to higher commodity prices, relative to the comparative three-year timeframe, which includes COVID impacts,” TVA spokesperson Scott Fielder said.

“Gas, purchased power and coal rates remain much higher than the three-year average rates, and volatility is still prevalent — especially in natural gas pricing. Lastly, an increase in the sales forecast is also contributing to the higher fuel rate. Sales are 9% higher compared to the 3-year average.”

The bottom line is that fuel costs will drop 33% in September from August.

TVA’s electric load set a record in June and Natural Gas prices jumped 141% in June, also.

“We recognize the effect any cost increase has on families right now, and I can tell you that TVA is highly focused on doing everything possible to support communities by keeping power bills as low as possible,” said Doug Perry, TVA senior president.

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