The Tennessee Valley Authority, our wholesale power provider, announced the second consecutive decrease in its quarterly fuel cost adjustment.  The drop will affect rates beginning in April and will result in a decrease of about 7 percent.  When fuel costs for coal, natural gas, etc., to run TVA’s generating plants for producing electricity decreases, the cost of electricity also decreases. 

Current economic conditions and increased rainfall help contribute to lower fuel and power costs.  Thus, TVA’s and HES’s FCA (Fuel Cost Adjustment) will be reduced similarly.  Because the FCA is a per kilowatt-hour charge, amounts that customers will save depend on the amount of energy they use. This means a $4-$6 savings on HES average customer monthly bill.  The rate decrease provides a welcome relief in higher-than-usual energy bills experienced this past winter.