TVA Rates to Drop Further

The Tennessee Valley Authority will charge less for electricity this summer, thanks to falling prices for coal and natural gas.

The TVA’s latest fuel-cost adjustment drops the rate to its lowest level in more than a year. Costs shot up dramatically last fall, but since then have been gradually dropping.

TVA Spokesman Jim Allen says there are two reasons: First, prices are declining for coal and natural gas, which fuel TVA power plants.

“In addition, our power sales have been down, and that means that we do not have to purchase expensive power to meet peak demand.”

Allen says a Tennessee Valley resident paying $93 a month will see utility bills drop by up to $5. The change takes effect July 1.

EXTRA:

Allen says recent rainfall has boosted TVA’s reservoir levels, which never fully recovered from a drought two years ago.

“All of our reservoir levels we expect to be at summer pool level by June 1, so the recent rainfall we’ve had throughout the Tennessee Valley has definitely improved.”

But Allen says the rain will have to persist in order to maintain those levels through summer.