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Fayetteville Public Utilities has announced that electric rates will decrease for the second consecutive month as the Tennessee Valley Authority’s variable fuel cost drops by $4.10 on an average electric bill of 1,330 kilowatts.
In the month of January, the average electric use of 1,330 kilowatts cost consumers $142.84. In February, the same electric use will decrease to a total of $138.74 due to the lower fuel cost amount.
According to TVA sources, one of the primary reasons the fuel cost has decreased over the past couple of months is milder weather, which means TVA used less fuel to produce electricity. Milder temperatures have also helped TVA avoid using more expensive “peak” generation that is normally needed to meet increased energy demand during winter months.
TVA has also benefited from above-average rainfall, which has sustained the supply of hydroelectricity from TVA’s 29 power generating dams across the Valley. Hydroelectricity is the cheapest form of power production in TVA’s power mix.
February electric rates continue to reflect TVA’s winter period rate schedule. TVA’s winter season rates began on Dec. 1 and will remain in place through March 31.
“We like to remind our customers that the changes in the electric rate structure continue to remain revenue-neutral for FPU, which means FPU earns no additional funds through TVA’s seasonal demand and energy rate changes,” said Britt Dye, FPU’s CEO and general manager.
“The seasonal rates and fuel costs are pass-through increases and decreases for FPU.”
For a complete listing of Fayetteville Public Utilities electric rates, visit their web site at www.fpu-tn.com and click on the rates section. To help electric consumers with their energy costs, FPU offers a budget billing plan to average monthly electric and natural gas bills.