KNOXVILLE, Tenn. (WATE) — Some residents in the TVA service area may see a reprieve in their utility bill beginning next month.
The Tennessee Valley Authority announced on Tuesday its wholesale fuel costs for August will be one of the lowest on record in part to the ongoing COVID-19 pandemic. Wholesale fuel cost refers to the rate at which the public utility buys fuel like natural gas and coal.
How the new rate will affect a power bill from your local power company will be up to the local company since it is a wholesale rate and not a retail rate.
Beginning with bills on Aug. 1, the total monthly fuel cost will be 1.414 cents per kilowatt-hour for residential and business consumers, 1.272 cents per kilowatt-hour for large manufacturing customers, and 1.291 cents per kilowatt-hour for other large usage customers served by TVA and local power companies.
The overall system average fuel rate for August is approximately 24% lower than the three-year average August fuel cost.
Part of the decline can be attributed to lower power sales due to the pandemic. TVA has also made an effort to diversify its fuel investment with a more equal amount of nuclear, coal, natural gas, hydro and renewable energy usage.
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