The Alcoa Electric Department is aware that many electric bills seem noticeably higher this month compared to similar months in the past. This may be due to a couple things. Consistently high temperatures cause HVAC systems to operate longer to maintain comfortable interior temperatures which results in higher monthly electric usage (kwh). In addition, TVA’s recent adjustment to fuel cost has caused end user rates to be significantly higher than recent history. Each customer bill includes a “Fuel Cost Adjustment” that goes directly to TVA to offset the cost of fuels used to generate electricity.
TVA writes on their website:
“TVA’s mission is to provide rates as low as feasible so we dispatch our generation fleet based on least-cost principles. Each month, TVA determines the hourly forecast of energy needed and then determines the least cost manner to serve that energy. Recognizing that forecasts are never perfect, there is a true-up mechanism which collects or refunds the difference between the forecast and actual fuel expenses and spreads that difference out over a couple months. By managing the fuel costs in this manner, TVA is able to remove the volatility of commodity markets and provide a more stable environment for our customers.”
Currently, the August adjustment rate is 4.99 cents per kWh used in residential consumption, as compared to July (4.149 cents per kWh) and June (2.942 cents per kWh). As of now, the Alcoa Electric Department does not have September 2022 Adjustments, but will provide updates as we gain more information.
To curtail large electric usage, the Alcoa Electric Department suggests possible ways to mitigate the amount of electricity usage, including but not limited to reduced lighting in unoccupied areas, unplugging unused equipment in residences and businesses, and adjusting thermostat temperatures in areas that are usually unoccupied. TVA also suggests scheduling an In-home Energy evaluation if you have concerns on your electricity usage. You can schedule an appointment using this link: https://energyright.com/
If you have questions or concerns, please call (865) 380-4890 for more information.