Local Power Rates Will Fall in August

Media Contact:

Wayne Scarbrough

(423) 745-4501 ext. 6002

wscarbrough@aub.org

July 17, 2019

ATHENS, Tenn. – As summertime temperatures continue to rise with the season, local electric power rates for August will fall compared to July based on lower generation fuel charges from TVA.

The residential power rate for Athens Utilities Board (AUB) customers in August will be $0.09217 per kilowatt hour compared to July’s rate of $0.09408.

The base rates for the two months are identical at $0.07456, as both are deemed “summer” rate months in TVA’s rate scheme.

The fuel charge for August is $0.01761 cents per kilowatt hour versus $0.01952 cents currently, said AUB’s Wayne Scarbrough.

“The monthly base rate is combined with the monthly TVA fuel charge to determine your full, effective retail rate for the period,” he said.

The fuel charge covers costs that TVA incurs in generating power, transporting fuel such as coal and gas, and many other costs related to wholesale power generation.  The charge rises or falls slightly each month commensurate with these generation costs.

“It’s nice to see the rate staying flat to falling during these hot summer months when everyone is running their air conditioners around the clock.  Outside temperature is the driver of how much energy you use, and your energy use in large part dictates the level of your bill,” he said.

The month-over-month change in rate will decrease the average residential user of 1,200 kilowatt hours by $2.30, Scarbrough said.

Scarbrough said that another welcomed seasonal message is that TVA appears to be holding off on levying another wholesale rate increase on AUB this fall, which had been the plan under the previous CEO.

“Jeff Lyash, the new CEO, has indicated to us that he has heard us, that he sees what we see regarding TVA being well ahead of their debt reduction schedule and that another rate increase imposed this fall would be bolstering TVA equity on the backs of our local communities,” Scarbrough said.

That, Scarbrough said, runs counter to the congressional act of 1933 that says TVA must maintain rates “as low as are feasible.”

AUB and other power distributors in the Valley have taken TVA to task over wholesale rate increases the federal agency has imposed for six years running on hometown utilities such as AUB.

“And they had everything in place to do it again this fall, but we believe that Mr. Lyash is listening to his customers, which are the 154 power distributors in the Valley who look out for the interest of our retail ratepayers living on our local systems,” Scarbrough said.

Scarbrough acknowledged that in the utility business, rate increases are sometimes necessary.

“Of course.  And the must be justifiable.  TVA is at a financial point where, after six consecutive years of rate increases, another increase this fall simply cannot be justified.  We believe Mr. Lyash sees this as clearly as we do and appreciate his show of integrity on the matter,” he said.

He said that nothing is final regarding TVA rate actions until the agency’s board of directors meets in August, but AUB and other local utilities are optimistic.

Meanwhile, we all can take simple steps to keep utility bills in check this summer.

“Summer is the cooling season, with ACs humming almost nonstop, and that can increase your power bill significantly.  It is also irrigation season for landscapers and gardeners.  That effects water and, possibly, wastewater bills as well,” he said.

To ease the sticker shock of summertime utility bills:

• -Bump your thermostat to 75 degrees.  Sixty-nine degrees feels great, but it will result in considerably more energy use and a notably higher cooling bill.
• -Check all doors and windows to ensure they are completely closed at all times.
• -Use weather stripping on doors and windows to preserve cooled air.
• -Use curtains, awnings, or other coverings for windows to reduce solar heat gain from the sun.
• -Ceiling fans can help circulate conditioned air throughout the house.

Regarding water use, if you irrigate a lot and live in the city, where wastewater charges are based on the amount of water you use, you may want to consider having AUB install an irrigation meter.

There is cost involved for AUB to make a new tap into the main line and set the new meter.  Over time, many homeowners find that an irrigation meter pays for itself by avoiding wastewater charges on thousands of gallons of irrigation water.

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