Local Power Rates Fall in February

Media Contact:

Wayne Scarbrough

(423) 745-4501 ext. 6002

wscarbrough@aub.org

January 16 2017

ATHENS, Tenn. – The price for a kilowatt hour of power from AUB will edge down in February compared to the current January level based on a slightly lower fuel charge from TVA.

The effective residential power rate for February will be $0.08843 per kilowatt hour, down from January’s rate of $0.08949.

The difference will lower the monthly charge for the average AUB customer using 1,200 kilowatt hours by about $1.30, said AUB’s Wayne Scarbrough.

“Many of us will use more than that average if February’s temperatures are typical for our region.  It is often the coldest month we have, when pipes freeze and heating units hum overtime keeping up with homeowner demands for heat,” he said.

“The mild weather we are enjoying in Athens now is a great time for simple home projects that can help keep winter’s cold out and keep your warm air inside,” Scarbrough said.

Installing weather stripping around doors and windows, adding insulation to an attic, and wrapping water heaters and hot water piping properly all can pay off.

“Some small projects can make a notable difference in comfort, and the results can help keep overall energy costs in check,” he said.

Scarbrough said that AUB and other power distributors in the Valley continue to press TVA on its apparent plan for annual base rate hikes while the federal agency enjoys record revenues and continues to pay out more than $100 million dollars annually in year-end employee bonuses.

“TVA has a lot of talented people from top to bottom.  They have highly skilled people who are well paid and are expected to perform at a high level,” said AUB General Manager Eric Newberry.

“I don’t think anyone begrudges a person making a good salary or a good wage in exchange for high performance and meeting company goals,” Newberry said.

“The concern comes when TVA claims to need more money from ratepayers every October in the form of another rate increase and then, each November, ratepayers see $100 million in year-end bonuses paid out for meeting work goals,” he said.

TVA rate hikes have raised AUB’s wholesale power costs by more than 32 percent since 2008, according to Newberry.

“We’ve had to pass that on to keep community utility financially whole, but we’ve had no local increases in that same eight-year time period to add to our operation’s bottom line.

“We have achieved this by watching our own costs and keeping the ratepayers—many of whom struggle to pay bills—foremost in our thinking.  TVA needs to focus on that aspect as well,” Newberry said.

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