TVA Announces 4th Rate Reduction

By: Pat Hunter

May 24, 2009

The Tennessee Valley Authority just announced another fuel cost adjustment reduction beginning July1.

TVA will roll back all of the fuel cost adjustment increase from last fall when the TVA Board approved a 20 percent rate increase because of escalating fuel price. The cost of coal and gas fuel has since decreased. This decrease in rates will mean 4.1 percent reduction in the total overall average wholesale rates.

The reduction is good news to ratepayers with savings in their monthly utility bills, which may vary from $2 to $5.

TVA serves seven southeastern states, which include Alabama, Georgia, Kentucky, Mississippi, North Carolina, Tennessee and Virginia. TVA also provides power to large industries and 158 power distributors that serve 9 million consumers.