POWER RATES RISE IN JUNE AS SUMMER RATES COME INTO EFFECT

The local power rate in the coming month of June will rise to $0.10138 from May’s level of $0.09579.

 The ‘summer’ base rate goes into effect in June at $0.07568 and the TVA fuel cost adjustment for the the month comes in at $0.02570, which yields the all up rate for the month.  The fuel cost for June will be slightly higher than in the month of May, which is $.02536.

 The four summer months of June through September will have the same base rate of $0.07568.  TVA will issue a new fuel cost every month.

 “We had hoped that TVA would be able to keep the fuel cost down to a level that would not push the final rate to 10 cents, but for June that won’t be the case,” said AUB’s Wayne Scarbrough.

AUB’s gets a varying fuel charge from TVA each month.  Some months it goes up, sometimes it falls.  The fuel rate charged by TVA is different from the power rate they charge to AUB.

“We pay TVA for the fuel charge and we pay them a power rate charge.  AUB has its portion of the power rate to cover our costs locally.  These costs are combined to get our overall rate,” Scarbrough explained.

AUB’s power rate has increased less than eight percent in the past 25 years.  TVA has increased its power rate by more than 62-percent in fewer than 20 years.

About 83 cents of every dollar that AUB’s power division collects go to TVA for wholesale power.