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Electric Rates

Electric Rate Update

As we reported in previous Utility Lines newsletters, TVA is making a transition in how it prices electricity. TVA is gradually changing prices to better reflect the cost of producing electricity at different times of the year and day. TVA and distributors are working now on the next round of revisions in the rates which may take place in October, 2012. TVA’s purposes are to promote energy efficiency, slow the growth in peak demand and give customers an opportunity to benefit by altering their use particularly at higher cost times. TVA’s costs vary by season of the year and time of the day. It costs more to make electricity when electric use and peak demands are highest. This happens on cold winter mornings and hot summer afternoons. During peak demand times, TVA has to use special peaking generators that burn more expensive fuel.

Alcoa Electric’s rates now include a seasonal feature. Base energy and demand charges in the rates differ in three distinct seasons. Base charges are lowest in transition months of April, May, October and November, a little higher in winter months of December through March and highest in summer months of June through September. The table below shows the base rates by season before TVA’s monthly fuel charge is added and the total rates for February which include TVA’s fuel charge adjustment for February. TVA publishes its fuel charge adjustment each month and the total rates for the month consist of the base rates plus the fuel charge adjustment applied to the energy charges. The fuel charge can increase or decrease depending on the change in TVA’s cost for fuel—coal, natural gas, fuel oil, nuclear fuel and purchased power from other systems. TVA’s fuel charge decreased in both January and February due to milder weather, more rain and hydroelectric generation and lower coal and natural gas prices. Electric rates for each month are posted on our website www.cityofalcoa-tn.gov and in our lobby at 223 Associates Boulevard.

City of Alcoa Electric Department

Quick Reference: Rates Effective June 2013

Residential
Customer Charge $11.25
Energy Charge 9.398 cents/kWh

General Power
GSA-1 (under 50 kW)
Customer Charge $18.54
Energy Charge 10.462 cents/kWh

GSA-2 (51-1000 kW)
Customer Charge $93.00
Energy Charge 10.230 cents/kWh for first 15,000 kWh 6.405 cents/kWh for all additional kWh
Demand Charge $12.65/kW for 51-1000 kW (no charge for first 50 kW)

GSA-3 (1001-5000 kW)*
Customer Charge $232
Energy Charge 6.402 cents/kWh (0.54 cents/kWh manufacturing credit)
Demand Charge $12.02/kW for 0-1000 kW ($1.38/kW man. credit) $12.77/kW for 1001-5000 kW ($1.63/kW man. credit)

Security Light, 100watt HP Sodium $7.00 per month

Street and Outdoor Lighting
Energy Charge 6.847 cents/kWh, 11% Investment Charge

* Rates for Larger Customers are available upon request.

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