Officials from the Tennessee Valley Authority announced Monday that fuel costs will be dropping significantly in September — down 33% from August.
Bills dated September 1 will show a monthly fuel cost of 3.064 cents per kilowatt-hour for residential and business, 2.76 cents per kilowatt-hour for large manufacturing and 2.80 cents per kilowatt-hour for large general service served by TVA and other local power companies.
Commodity prices were “exceptionally high” in late July and early August. And it should be noted that despite this month-to-month decrease, the September 2022 fuel rate is still 100% higher than the three-year average.
This higher fuel rate is mostly due to higher commodity prices relative to a three-year comparative timeframe, which still includes those early COVID-19 impacts in 2020.
Gas, purchased power and coal rates remain much higher than the three-year average rates, and
volatility is still prevalent — particularly in natural gas pricing.
And lastly, an increase in the sales forecast is also contributing to the higher fuel rate, as sales are 9% higher compared to the three-year average.
