Drop in TVA fuel cost more than offsets rate hike - WRCBtv.com | Chattanooga News, Weather & Sports

Drop in TVA fuel cost more than offsets rate hike

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KNOXVILLE, Tenn. (AP) - Tennessee Valley Authority ratepayers in October will get a break from lower fuel costs, with average residential bills expected to drop by up to $4.50.

Despite a 2% increase in the utility's base rate starting next month, a TVA statement Monday said a projected reduction in demand for power and coal-fired generation will actually reduce customer bills.

Compared to September, the combined effects of the higher base rate and the decrease in total monthly fuel costs will mean an average decrease that ranges from $1.50 to $4.50, depending on usage.

The statement said average wholesale rates in October will be lower than they have been since June.

TVA supplies power to about 9 million people in Tennessee, Kentucky, Alabama, Mississippi, Georgia, North Carolina and Virginia.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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