TVA FUEL COST ADJUSTMENT RAISES JANUARY’S POWER RATE; NATURAL GAS COST EASES SOMEWHAT
ATHENS, Tenn. – The power rate from Athens Utilities Board (AUB) for the coming month of January will increase somewhat as winter rates from TVA continue and as the TVA fuel cost ratchets up a bit.
The local power rate will move from the current $0.09571 up to $0.09700 per kilowatt hour. AUB’s winter base rate remains the same as December’s base rate, but TVA has a higher fuel cost for January, thereby raising the effective rate.
The January fuel cost from TVA is going up to $0.02612 compared to December’s $.0.02483.
“That’s the full reason for the uptick. The base rate is staying steady month to month, but the fuel cost for next month is rising compared to December,” said AUB’s Wayne Scarbrough.
Your power rate has two components. There is the base rate, which changes seasonally, and a fuel-charge adder from TVA that changes monthly. This winter, the base rate is $0.07088.
“The base rate will stay where it is in December straight through March. That won’t change. The only thing that will change is TVA’s fuel cost. TVA had predicted that the January fuel charge would be a bit more than it actually is, so that’s good,” Scarbrough said.
About 83 cents of every dollar that AUB’s power division collects go to TVA for wholesale power.
He said that AUB hopes the February fuel cost drops down a bit, and indications from TVA are that this should be the case.
The area is starting to feel winter’s grip, with overnight temperatures falling into the 20s. Those colder temperatures will mean more energy use for heating whether the source is electricity, natural gas, or even wood in the stove or fireplace.
“Now is the time of year to take those wintertime measures to make your home as air-tight possible. Be sure to fill in all the spaces where cold air can creep in and warm air gets out. And as we’ve said before, it really helps to dress more warmly even when indoors,” Scarbrough said.
The internet has a lot of tips on how to winterize your home or apartment. Even seemingly small fixes that are inexpensive can make a real difference.
Scarbrough again warned of higher natural gas costs for the coming months.
“We are seeing higher natural gas costs, for sure. Just as with electricity, AUB’s base charge for natural gas has not gone up, but a charge we incur every month called the Purchased Gas Adjustment (PGA) is going up,” he said.
The PGA rose dramatically from $0.06795 in October up to $0.08225 in November.
“This month, December, we got a bit of a break as the PGA fell back to $0.06728. However, a year ago, in December 2020, it was at $0.04787. So, you can see the jump natural gas has made. We hope that the downward trend in cost continues as the country moves past the grip of COVID and costs for all sorts of things come back in line,” Scarbrough said.
“Still, customers should plan on natural gas to be more than it was last winter, so we urge our customers to plan for that,” he said.
