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Electric power customers should see a
reduction in their electric rates in
January, which amounts to approximately
three percent, according to Lynn Compton,
manager of Carroll County Electric
Department.
“The rates are probably going to change
every three months, based on fuel costs of
coal, oil, natural gas, uranium, the amount
of rainfall and off-system power purchases,”
said Compton. “There may be a month when the
rate will remain the same, but it will be
looked at each quarter.”
Electric customers experienced a 6 percent
increase in October.
Meeting at TVA headquarters in Knoxville,
the board approved a change in the formula
used to calculate quarterly fuel cost
adjustment to power rates. The change is
designed to smooth fluctuations in the fuel
cost adjustment from quarter to quarter
throughout the year. The new baseline
formula is effective January 1, 2008.
The fuel cost adjustment for the three-month
period beginning January 1 will be about
half the amount for the quarter ending
December 31. Because the fuel cost
adjustment is a per kilowatt-hour charge,
amounts that consumers will save depend on
the amount of energy used. Typical savings
on consumers’ monthly power bills could
range from $1.40 to $2.70 in the fuel cost
adjustment portion of the bill.
As a result of continuing dry conditions in
the Tennessee Valley, TVA’s hydroelectric
generation – its cheapest source of power –
remains significantly below normal for the
first few months of the 2008 fiscal year,
TVA President and CEO Tom Kilgore told the
TVA Board.
In an operations report to the board,
Kilgore said that yearly rainfall amounts in
the Valley have been below normal for the
past four fiscal years and decreasing each
year, with the 2007 rainfall at 33 percent
below normal. He said runoff – the amount of
water that reaches the river and reservoirs
– was 22 percent and 46 percent below normal
in 2006 and 2007, respectively.
As a result, TVA’s power generation from
hydroelectric plants was 24 percent below
normal in 2006, 31 percent below normal in
2007 and 66 percent below normal so far this
fiscal year, which began October 1. Reduced
hydroelectric generation helps drive up
purchased power costs, which Kilgore said
are about $20.6 million higher than
projected so far this fiscal year.
“When you look at cumulative rainfall totals
in the Valley since 2004, each year the
rainfall amounts have progressively been
worse, culminating with 2007 which was the
driest year,” Kilgore said. “This lack of
rainfall and runoff has led to significantly
lower hydro generation the past two years,
and we’re starting off fiscal year 2008 even
lower than the previous two years.”
The board also:
*Set the 2008 compensation for Kilgore and
his leadership team.
*Authorized TVA staff to purchase gas
generation facilities or construction sites
to meet the need for additional peaking and
intermediate generating capacity.
*Approved contracts with AREVA and BHP
Bilton to purchase uranium as part of TVA’s
fuel supply needs for its nuclear plants
after 2012.
Kilgore also updated the board on TVA’s
energy-efficiency initiatives, pointing out
that since 1997 TVA and local power
distributors have achieved a reduction in
energy demand of 523 megawatts. He said
TVA’s goal is to reduce the demand by 1,200
megawatts by 2013, and TVA will expand
stakeholder involvement in helping develop
ideas on how to reduce energy use.
Kilgore offered a few simple things people
can do now to reduce energy use, which
include:
* Turn down the thermostat in the winter and
up in the summer.
* Turn off lights and appliances when not in
use.
* Use compact fluorescent lamps
* Make sure there is adequate insulation and
weather stripping.
* Change heating, ventilation and air
conditioning filters regularly.
* Use less power between 4 p.m. and 8 p.m.
during the summer.
TVA is the nation’s largest public power
provider and is completely self financing.
TVA provides power to large industries and
158 power distributors that serve
approximately 8.7 million consumers in seven
southeastern states. TVA also manages the
Tennessee River and its tributaries to
provide multiple benefits, including flood
damage reduction, navigation, water quality
and recreation. |
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