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FPU passes TVA rate hike on to customers

Posted on Tuesday, October 8, 2013 at 10:14 am

The Tennessee Valley Authority recently approved a rate increase that Fayetteville Public Utilities will pass along to customers, according to a statement released this week by Fayetteville Public Utilities’ CEO and General Manager Britt Dye.

FPU will not receive any additional revenues from this increase.

Power rates will increase this month by 1.5 percent as TVA’s new fiscal year begins, adding about $1.50 a month to the average residential electric bill.

At the same time, two other components of the electric bill will also change. TVA has lowered its total monthly fuel cost amount for the month of October and has decreased the energy charge because the transition month goes into effect according to TVA’s seasonal rate schedule.

The October rates are a result of the combined changes in the total monthly fuel cost amount, the transition month and the TVA electric base rate. Together, these three components of our residential electric rates will result in an overall decrease amount for most customers this month.

“Unlike some utilities, FPU uses itemized billing to show its customers line by line what they are getting for their energy dollars,” says Dye.

As Dye states, FPU stands firm in communicating rates, cost of service and other utility issues to its customers.

Effective Oct. 1, FPU’s residential electric customers will see a decrease of $4.95 if using the average 1,330 kilowatt-hours (kWh) during the month. Electric bills for the 1,330 kWh will be $134.78 this month as compared to $139.73 for the same use in September.

Under TVA’s seasonal rate structure, this month begins the transition period for electric demand. Transition months include October, November, April and May. During these months, rates are generally lower than those of summer and winter months because less electricity is needed to power the Tennessee Valley, enabling TVA to rely less on the more expensive fuels like purchased power to meet demand.

“Those who supply our energy face the same concerns as we do as a power distributor – increased operation costs, facility maintenance and lower sales,” Dye adds. “We, at FPU, will do all that we can to keep your rates low while providing the best, most reliable service possible, in spite of those outside our control.”

FPU sends 75-cents of every revenue dollar collected from electric customers to TVA to pay for power purchased.

To help electric consumers with their energy costs, FPU offers a budget billing plan to average monthly electric and natural gas bills. FPU also offers the TVA Do-It-Yourself Energy Audit online at www.fpu-tn.com or you may visit their office for a paper version of the energy audit.