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TVA to drop wholesale rates by 11% in September: spokesman


The Tennessee Valley Authority will decrease its wholesale fuel rate by 11% in September, a TVA spokesman said.

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For the billing period beginning September 1, the total monthly fuel cost will be 1.968 cents/kWh compared to 2.222 cents/kWh in August, said the spokesman, Scott Brooks, in an email.

This year's rate is 18.7% lower than the September 2012 monthly fuel cost of 2.421 cents/kWh.

"Lower power sales and above average hydro production this summer contributed to the September figure," Brook said. The last time the fuel cost was this low was in March 2012 at 1.953/kWh, he added.

The total monthly fuel cost is what TVA uses to recover the costs of the fuel it utilizes to generate electricity -- such as coal and natural gas. It is variable and calculated monthly as generation fuel costs and purchased power costs from other suppliers rise and fall.

TVA charges wholesale prices to the 155 local power companies that, in turn, provide power to 9 million people in parts of seven southeastern US states.

--Kassia Micek,
--Edited by Richard Rubin,