TVA monthly fuel cost, power rates decrease BY DAVID ZOELLER dzoeller@paducahsun The Tennessee Valley Authoritys total monthly fuel cost is the lowest in four years and its wholesale rates have dropped, in contrast with rates charged by Paducah Power System believed to be the highest in Kentucky. TVA produces electricity across the seven-state Tennessee Valley region. The electricity is purchased by 155 local power companies. Paducahs power previously was obtained from TVA. This Novembers total monthly fuel cost for TVA will be 1.896 cents per kilowatt-hour, according to Scott Brooks, a TVA spokesman. That is approximately 17 percent lower than the three-year average November figure of 2.297 cents per kwh. The fuel cost accounts for about 30 percent of the wholesale rate TVA charges its customers. This is the lowest total monthly fuel cost in nearly four years (since weve been calculating the full cost of fuels), Brooks said. According to Brooks, TVA (wholesale) rates are down 9 percent since May, even with the 1.5 percent increase in the fixed portion (approximately two-thirds) of the wholesale rate approved by the TVA board in August, which went into effect Oct. 1. TVAs average wholesale rate last May was 7.7 cents per kwh, compared to Novembers 7.01 average of cents per kwh, Brooks said. Fuel is approximately 30 percent of TVAs expenses, and includes costs for coal, natural gas, purchased power and other fuels. The rate companies that buy power from TVA charge their customers varies, depending on their costs. Each local power company could list charges differently on customers bills. Paducah Power System officials made the initial decision to leave TVA in 2004 and invest in the Illinois-based Prairie State Energy Campus. Reasons cited were concern for TVAs aging equipment, among other things, and the perceived savings on fuel costs since the Prairie State coal-fired plant was sitting on an estimated 32-year supply of coal. However, increased construction costs and operation problems since Prairie States two generating units went on line in 2012 increased costs and resulted in a spike in PPS power cost adjustment, which is passed on to customers. The poor performance of Prairie State, the cost of PPS debt as an owner/investor, and the impact of those costs on electric rates have sparked outrage in the community and led to the recent resignations of two top utility officials. A reorganized PPS board has vowed to consider all options in determining how to proceed and provide rate relief. Contact David Zoeller, a Paducah Sun staff writer, at 270-575-8676.
Posted on: Fri, 17 Oct 2014 12:00:00 +0000
Trending Topics
Recently Viewed Topics
© 2015