Higher Fuel Charge Pushes March Power Rates Higher

Media Contact:

Wayne Scarbrough

(423) 745-4501 ext. 6002

wscarbrough@aub.org

February 15, 2018

ATHENS, Tenn. – Local electric power rates for March will rise by nearly four percent compared to February, driven by a higher monthly fuel charge.

The local residential power rate for March for Athens Utilities customers will be $0.09132 compared to February’s rate of $0.08783.

The effective rate paid by retail customers includes two components added together, the base rate and a fuel charge.   Because March is still considered a winter rate month in TVA’s rate scheme, the base rate will be unchanged compared to February at $0.06842 per kilowatt hour.

However, March’s fuel charge of $0.02290 per kilowatt hour is nearly 18 percent above February’s fuel charge of $0.01941.

“That’s what is creating the uptick in March power rates locally, TVA’s higher cost of generation fuel,” said AUB’s Wayne Scarbrough.

“TVA relies increasingly on natural gas to generate electric power, and low gas rates have helped keep the monthly fuel charge portion of the rate down.  It has somewhat masked the annual TVA base rate increases.

“We are concerned that if natural gas prices cycle up from the lows of the past few years, pushing fuel costs higher, the effect of TVA’s ongoing base rate increases will really start to be felt by our residential customers,” he said.

AUB customer service representatives continue to work daily with customers who are working through high winter heating bills.

“The month of January was brutal from a heating demand standpoint.  That really drove bill amounts up as heating units ran almost non-stop to keep homes warm,” Scarbrough said.

While higher energy use in extreme cold is a given, whether you use electricity, gas, or even if you burn wood (which is just stored energy), there are some relatively easy and inexpensive things you can do help moderate winter bills.

Decide how warm you must keep your home.  It makes a difference if you set your thermostat on 68 degrees rather than 72 degrees.

To keep warm air inside and cold air out, use inexpensive weather stripping on doors and windows to eliminate even small drafts.  Keep doors and windows closed at all times possible. 

Other tips include:

• Ensure adequate insulation in your attic.
• Put an insulating blanket on your water heater.
• Dress for the season, even while inside.
• Take advantage of the sun’s heat by opening curtains on the sunny side of the house.  Otherwise, close curtains.
• Clean system filters every month, using your utility bill as a reminder.

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