TVA cuts February power rates
CHATTANOOGA, TN. (Times Free Press) -- January's wet and warmer weather may have flooded some low-lying areas this week, but it also is helping keep some low-income consumers financially afloat with cheaper winter heating bills.
For the second consecutive month, TVA will cut its fuel cost adjustment in February, reducing retail electricity prices about 3.1 percent next month. In Chattanooga, EPB estimates that the typical residential customer will save about $3.42 next month because of the drop in TVA's fuel costs.
The Tennessee Valley Authority, which supplies power to 9 million homes and businesses in its seven-state region, adjusts its power rates each month to reflect changes in the price of coal, gas and purchased power. With the fuel cost cut next month, February's rates for TVA will be the lowest since April 2012.
"One of the primary reasons that the fuel cost has decreased over the last few months is milder weather, which means that TVA used less fuel and avoided having to use higher-cost "peaking" generation sources," TVA spokesman Scott Brooks said.
Read more on the story from our news partners at the Chattanooga Times Free Press.