Local Power Rates Climb in July on Higher TVA Fuel Costs

Media Contact:

Wayne Scarbrough

(423) 745-4501 ext. 6002

wscarbrough@aub.org

June 18, 2019

ATHENS, Tenn. – Local electric power rates for July will be a bit higher compared to June based on higher generation fuel charges from TVA.

The residential power rate for Athens Utilities Board (AUB) customers in July will be $0.09408 per kilowatt hour compared to June’s rate of $0.09295.

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

The monthly base rate is combined with a monthly TVA fuel charge to determine the full retail rate for the period.

“The fuel charge for July is 1.952 cents per kilowatt hour versus 1.839 cents currently,” said AUB’s Wayne Scarbrough.

The fuel charge encompasses myriad costs that TVA incurs in generating power.  The charge rises or falls slightly each month commensurate with these generation costs.

“The charge includes things that seem intuitive, such as TVA’s costs for nuclear fuel, coal or natural gas on the market.  It also includes costs that are not as obvious, such as the cost to transport fuel materials by rail, barge, pipeline charges and more,” Scarbrough said.

The month-over-month change in rate will increase the average residential user of 1,200 kilowatt hours by $2.50, Scarbrough said.

“Power bills and many water bills tend to rise in the summer as air conditioners work to keep pace with the heat and irrigation for lawns and gardens increases,” he said.

To ease the sticker shock of summertime cooling 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.

On the water side, 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 water used to keep things green and growing when nature takes a turn toward hot and dry.

“An irrigation meter can be a good investment for customers with lawn irrigation systems and for gardeners who cringe at their water/wastewater bill during those long dry spells that create the need for a lot of supplemental watering,” Scarbrough said.

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