Fayetteville Public Utilities announced this week that electric customers will see a decrease in the total monthly fuel cost charge on their electric bills effective July 1.
FPU residential customers who have a monthly electric use averaging 1,330 kilowatts will see a decrease from $145.20 to $143.61 in July. This is a total decrease on the average electric bill of $1.59.
The Tennessee Valley Authority cites two reasons for the decrease in July’s total monthly fuel cost: 1) the purchased power cost was down, and 2) hydro generation in May was up. Purchased power is that power which TVA purchases from other utilities when it can buy power cheaper than it can generate electricity themselves. Hydroelectric power is TVA’s cheapest form of power generation, and TVA relies heavily on hydro power when conditions are favorable.
The months of July through September continue to be billed based on TVA’s summer demand rate where overall energy rates are higher than that of spring and fall due to higher demand for electricity to support air conditioning and other summer-related energy use.
The total fuel cost charge is a pass-through charge from TVA to FPU’s electric customers.
Please check FPU’s web site at www.fpu-tn.com for a more detailed listing of electric rates effective in July.
To further 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 can pick up the paper version of the energy audit at any FPU office location.