Local electric bills are expected to swell by as much as 10 percent over the next year, officials said, as the Tennessee Valley Authority expects raises its fuel cost adjustments.
The increase would affect all utilities connected to TVA, including Columbus Light & Water and 4-County Electric Power Association, said CL&W General Manager Todd Gale.
The monthly charge has increased steadily since June, when the adjustment was .198 cents per kilowatt-hour used by a customer.
The charge, which is the only part of the bill that fluctuates, is generally about $4 to $8, said 4-County spokesman Jon Turner.
But for the billing period beginning Oct. 1, the adjustment will jump 6.4 percent, from 0.659 cents per kilowatt-hour to 1.127 cents, increasing residential bills between $4 and $8.50.
Gale said he”s been telling churches and other organizations to plan conservatively for a 10-percent increase on their monthly bill.
The October increase was caused by heavy costs in August. According to TVA”s website. August had the highest monthly FCA expense since the adjustment began.
The adjustment ultimately depends on production and consumption of fossil fuels. After TVA receives its bill for the coal, it passes the charges down to local utilities, which add a percentage of the cost to each customer”s bill, Turner said.
“Typically, that”s really weather-dependent,” Turner said. “If we have a real mild winter, bills should be manageable.”
Utility rates are otherwise expected to remain fixed, Gale added.
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