As the temperatures fall, many members will begin to see higher energy bills, but are these higher bills entirely due to colder weather? Perhaps not.
One component of your electric bill is the Tennessee Valley Authority’s Fuel Cost Adjustment. This is the cost of the fuels it takes to generate your power. These fuels consist of uranium, coal, oil and natural gas. TVA must purchase these raw materials to generate the electricity that powers our homes. The Fuel Cost Adjustment is passed directly from TVA to our members, and every dollar goes back to TVA.
The prices of the fuels TVA needs rise and fall throughout the year. This is due to many factors, including weather, regional and global economic conditions, and supply and demand.
TVA’s Fuel Cost Adjustment continues to be higher than normal. For a comparison, the fuel cost for December 2022 was 12.6% higher than December 2021.
Due to a combination of increased fuel costs and colder temperatures, Powell Valley Electric Cooperative members can expect electric bills that are higher than normal. We understand that these higher bills could create a financial burden for our members. Assistance on your electric bill might be available for those who are eligible through the federally funded Low Income Home Energy Assistance Program (LIHEAP). For more information, visit energyright.com/residential/energy-assistance/ or pve.coop/account/energy-assistance/.