Rise in TVA fuel costs caused surge in Huntsville area electric bills

Rise in TVA fuel costs caused surge in Huntsville area electric bills

Most residents in the Huntsville area received quite a shock when they opened their utility bills during the summer or early fall.

A surge in fuel costs caused electric bills to increase well over what they paid for the same period a year ago. Some residents saw their utility bills doubled over the summer.

Joe Gehrdes, director of community relations for Huntsville Utilities, said HU’s electric rate hasn’t changed, but customers are seeing an increase in the fuel cost adjustment (FCA) from the Tennessee Valley Authority, where the utility purchases power.

He said the rate typically moves between 1.5 to 2.5 cents per kilowatt hour.

“However, in June the fuel cost increased to 2.715 cents,” he said. “In July, it increased to 3.829 cents, and for August, TVA increased it to 4.612 cents, accounting for an approximate 40% increase.”

And Huntsville Utilities customers were not alone. According to Athens Electric Manager Blair Davis, electric bills are up approximately 12% from October last year, “a pass through of the TVA’s increase in rates, due to increased fuel cost for power generation.”