Tennessee Valley Authority Fuel Cost Adjustment

What is the Fuel Cost Adjustment?

Since January 2007, Volunteer Energy Cooperative (VEC) customer bills have included a separate Fuel Cost Adjustment, a pass-through charge from the Tennessee Valley Authority (TVA). VEC does not receive any of the FCA charges - The funds collected through the FCA go directly to TVA. In April 2010, the way in which the Fuel Cost Adjustment is calculated will mean a change in the amount that is charged to VEC customers.

Why charge a Fuel Cost Adjustment?

Volunteer Energy Cooperative buys power from TVA and provides it to our customers.

About 75% of TVA’s power supply comes from fuels used to make electricity – nuclear, coal, oil and natural gas. When the prices of these fuels change – because of weather, the economy and the global supply and demand for fuels - TVA’s costs change. This fuel cost increases or decreases monthly, depending on how much TVA pays for fuel and purchased power.

In the past, a portion of TVA’s cost of fuel were included in the base rate part of your electric bill – the part that primarily covers TVA’s cost of building and operating power plants and transmission lines. The rest of TVA’s fuel costs were recovered through the monthly fuel cost adjustment on customer bills.

Effective with April 2011 billing, 100% of TVA’s fuel costs will be included in the Fuel Cost Adjustment. That means the new total monthly fuel cost amount on customer bills will be larger than the fuel amount in the past - because it contains the fuel costs that had been in the base rate. However, the base rate portion of your bill is correspondingly lower. This change simply moves charges from one portion of your bill to another.

Why is TVA changing the Fuel Cost Adjustment?

Putting all of the fuel in one category is an easier and more transparent way to reflect fuel costs. This change is part of an overall change in the pricing structure of TVA’s electricity they sell to VEC. Fuel costs are a significant component of TVA’s overall costs, and TVA has required VEC to make this change in the retail rate structure.

TVA Fuel Cost Adjustments will be:

February, 2012 consumption
Residential: 2.163¢ per KWh
Outdoor Lighting: 2.163¢ per KWh
General Power
Part 1: 2.125¢ per KWh
Part 2: First 15,000 KWh: 2.125¢ per KWh
Additional KWH: 2.081¢ per KWh
Part 3: 2.081 per KWh
All Other Industrial: 2.056¢

January, 2012 consumption
Residential: 2.439¢ per KWh
Outdoor Lighting: 2.439¢ per KWh
General Power
Part 1: 2.396¢ per KWh
Part 2: First 15,000 KWh: 2.396¢ per KWh
Additional KWH: 2.347¢ per KWh
Part 3: 2.347 per KWh
All Other Industrial: 2.319¢

December, 2011 consumption
Residential: 2.686¢ per KWh
Outdoor Lighting: 2.686¢ per KWh
General Power
Part 1: 2.639¢ per KWh
Part 2: First 15,000 KWh: 2.639¢ per KWh
Additional KWH: 2.585¢ per KWh
Part 3: 2.585 per KWh
All Other Industrial: 2.553¢

November, 2011 consumption
Residential: 2.470¢ per KWh
Outdoor Lighting: 2.470¢ per KWh
General Power
Part 1: 2.426¢ per KWh
Part 2: First 15,000 KWh: 2.426¢ per KWh
Additional KWH: 2.376¢ per KWh
Part 3: 2.376 per KWh
All Other Industrial: 2.347¢

October, 2011 consumption
Residential: 2.527¢ per KWh
Outdoor Lighting: 2.527¢ per KWh
General Power
Part 1: 2.482¢ per KWh
Part 2: First 15,000 KWh: 2.482¢ per KWh
Additional KWH: 2.431¢ per KWh
Part 3: 2.431 per KWh
All Other Industrial: 2.402¢

September, 2011 consumption
Residential: 2.887¢ per KWh
Outdoor Lighting: 2.887¢ per KWh
General Power
Part 1: 2.836¢ per KWh
Part 2: First 15,000 KWh: 2.836¢ per KWh
Additional KWH: 2.777¢ per KWh
Part 3: 2.777 per KWh
All Other Industrial: 2.744¢

August, 2011 consumption
Residential: 2.970¢ per KWh
Outdoor Lighting: 2.970¢ per KWh
General Power
Part 1: 2.918¢ per KWh
Part 2: First 15,000 KWh: 2.918¢ per KWh
Additional KWH: 2.858¢ per KWh
Part 3: 2.858 per KWh
All Other Industrial: 2.823¢

July, 2011 consumption
Residential: 2.914¢ per KWh
Outdoor Lighting: 2.914¢ per KWh
General Power
Part 1: 2.862¢ per KWh
Part 2: First 15,000 KWh: 2.862¢ per KWh
Additional KWH: 2.804¢ per KWh
Part 3: 2.804 per KWh
All Other Industrial: 2.770¢

June, 2011 consumption
Residential: 2.564¢ per KWh
Outdoor Lighting: 2.564¢ per KWh
General Power
Part 1: 2.519¢ per KWh
Part 2: First 15,000 KWh: 2.519¢ per KWh
Additional KWH: 2.467¢ per KWh
Part 3: 2.467 per KWh
All Other Industrial: 2.437¢

May, 2011 consumption
Residential: 2.543¢ per KWh
Outdoor Lighting: 2.543¢ per KWh
General Power
Part 1: 2.498¢ per KWh
Part 2: First 15,000 KWh: 2.498¢ per KWh
Additional KWH: 2.447¢ per KWh
Part 3: 2.447 per KWh
All Other Industrial: 2.417¢

April, 2011 consumption
Residential: 2.575¢ per KWh
Outdoor Lighting: 2.575¢ per KWh
General Power
Part 1: 2.529¢ per KWh
Part 2: First 15,000 KWh: 2.529¢ per KWh
Additional KWH: 2.477¢ per KWh
Part 3: 2.477¢ per KWh
All Other Industrial: 2.477¢

March, 2011 consumption
Residential: $0.00664 per KWh
Outdoor Lighting: $0.00664 per KWh
General Power
Part 1: $0.00653 per KWh
Part 2: First 15,000 KWh: $0.00653 per KWh
Additional KWH: $0.00639 per KWh
Part 3: $0.00639 per KWh
All Other Industrial: $0.00631

February, 2011 consumption
Residential: $0.00472 per KWh
Outdoor Lighting: $0.00472 per KWh
General Power
Part 1: $0.00464 per KWh
Part 2: First 15,000 KWh: $0.00464 per KWh
Additional KWH: $0.00455 per KWh
Part 3: $0.00455 per KWh
All Other Industrial: $0.00449

January, 2011 consumption
Residential: $0.00594 per KWh
Outdoor Lighting: $0.00594 per KWh
General Power
Part 1: $0.00583 per KWh
Part 2: First 15,000 KWh: $0.00583 per KWh
Additional KWH: $0.00571 per KWh
Part 3: $0.00571 per KWh
All Other Industrial: $0.00564 

December, 2010 consumption
Residential: $0.00516 per KWh
Outdoor Lighting: $0.00516 per KWh
General Power
Part 1: $0.00507 per KWh
Part 2: First 15,000 KWh: $0.00507 per KWh
Additional KWH: $0.00496 per KWh
Part 3: $0.00496 per KWh
All Other Industrial: $0.00490 

November, 2010 consumption
Residential: $0.00796 per KWh
Outdoor Lighting: $0.00796 per KWh
General Power
Part 1: $0.00782 per KWh
Part 2: First 15,000 KWh: $0.00782 per KWh
Additional KWH: $0.00766 per KWh
Part 3: $0.00766 per KWh
All Other Industrial: $0.00757 

October, 2010 consumption
Residential: $0.01221 per KWh
Outdoor Lighting: $0.01221 per KWh
General Power
Part 1: $0.01200 per KWh
Part 2: First 15,000 KWh: $0.01200 per KWh
Additional KWH: $0.01175 per KWh
Part 3: $0.01175 per KWh
All Other Industrial: $0.01161 

September, 2010 consumption
Residential: $0.00714 per KWh
Outdoor Lighting: $0.00714 per KWh
General Power
Part 1: $0.00701 per KWh
Part 2: First 15,000 KWh: $0.00701 per KWh
Additional KWH: $0.00687 per KWh
Part 3: $0.00687 per KWh
All Other Industrial: $0.00679 

August, 2010 consumption
Residential: $0.00550 per KWh
Outdoor Lighting: $0.00550 per KWh
General Power
Part 1: $0.00541 per KWh
Part 2: First 15,000 KWh: $0.00541 per KWh
Additional KWH: $0.00530 per KWh
Part 3: $0.00530 per KWh
All Other Industrial: $0.00523 

July, 2010 consumption
Residential: $0.00437 per KWh
Outdoor Lighting: $0.00437 per KWh
General Power
Part 1: $0.00429 per KWh
Part 2: First 15,000 KWh: $0.00429 per KWh
Additional KWH: $0.00420 per KWh
Part 3: $0.00420 per KWh
All Other Industrial: $0.00415 

June, 2010 consumption
Residential: $0.00215 per KWh
Outdoor Lighting: $0.00215 per KWh
General Power
Part 1: $0.00211 per KWh
Part 2: First 15,000 KWh: $0.00211 per KWh
Additional KWH: $0.00206 per KWh
Part 3: $0.00206 per KWh
All Other Industrial: $0.00204 

May, 2010 consumption
Residential: -$0.00142 per KWh
Outdoor Lighting: -$0.00142 per KWh
General Power
Part 1: -$0.00139 per KWh
Part 2: First 15,000 KWh: -$0.00139 per KWh
Additional KWH: -$0.00137 per KWh
Part 3: -$0.00137 per KWh
All Other Industrial: -$0.00135  

April, 2010 consumption
Residential: -$0.00209 per KWh
Outdoor Lighting: -$0.00209 per KWh
General Power
Part 1: -$0.00205 per KWh
Part 2: First 15,000 KWh: -$0.00205 per KWh
Additional KWH: -$0.00201 per KWh
Part 3: -$0.00201 per KWh
All Other Industrial: -$0.00199  

March, 2010 consumption
Residential: -$0.00598 per KWh
Outdoor Lighting: -$0.00598 per KWh
General Power
Part 1: -$0.00588 per KWh
Part 2: First 15,000 KWh: -$0.00588 per KWh
Additional KWH: -$0.00576 per KWh
Part 3: -$0.00898 per KWh
All Other Industrial: -$0.00576  

February, 2010 consumption
Residential: -$0.00933 per KWh
Outdoor Lighting: -$0.00933 per KWh
General Power
Part 1: -$0.00917 per KWh
Part 2: First 15,000 KWh: -$0.00917 per KWh
Additional KWH: -$0.00898 per KWh
Part 3: -$0.00898 per KWh
All Other Industrial: -$0.00887  

January, 2010 consumption
Residential: -$0.00866 per KWh
Outdoor Lighting: -$0.00866 per KWh
General Power
Part 1: -$0.00851 per KWh
Part 2: First 15,000 KWh: -$0.00851 per KWh
Additional KWH: -$0.00833 per KWh
Part 3: -$0.00833 per KWh
All Other Industrial: -$0.00823  

December, 2009 consumption
Residential: -$0.00717 per KWh
Outdoor Lighting: -$0.00717 per KWh
General Power
Part 1: -$0.00705 per KWh
Part 2: First 15,000 KWh: -$0.00705 per KWh
Additional KWH: -$0.00690 per KWh
Part 3: -$0.00690 per KWh
All Other Industrial: -$0.00682

Beginning November 1, 2009 TVA Fuel Cost Adjustments will be:

November, 2009 consumption
Residential: -$0.00335 per KWh
Outdoor Lighting: -$0.00335 per KWh
General Power
Part 1: -$0.00329 per KWh
Part 2: First 15,000 KWh: -$0.00329 per KWh
Additional KWH: -$0.00322 per KWh
Part 3: -$0.00322 per KWh
All Other Industrial: -$0.00318

October, 2009 consumption
Residential: -$0.00221 per KWh
Outdoor Lighting: -$0.00221 per KWh
General Power
Part 1: -$0.00219 per KWh
Part 2: First 15,000 KWh: -$0.00219 per KWh
Additional KWH: -$0.00216 per KWh
Part 3: -$0.00216 per KWh
All Other Industrial: -$0.00216

2009 Third Quarter (For July, August & Sept. consumption)
Residential - $.00570 per KWh
Outdoor Lighting - $.00570 per KWh
General Power
Part 1 $.00560 per KWh
Part 2 First 15,000 KWh $.00560 per KWh
Additional KWH $.00549 per KWh
Part 3 $.00549 per KWh
All Other Industrial $.00542

2009 Second Quarter (For April, May, & June consumption)
Residential - $.00878 per KWh
Outdoor Lighting - $.00878 per KWh
General Power
Part 1 $.00863 per KWh
Part 2 First 15,000 KWh $.00863 per KWh
Additional KWH $.00845 per KWh
Part 3 $.00845 per KWh
All Other Industrial $.00834

2009 First Quarter (For Jan., Feb., & Mar. consumption
Residential - $.01441 per KWh
Outdoor Lighting - $.01441 per KWh
General Power
Part 1 $.01415 per KWh
Part 2 First 15,000 KWh $.01415 per KWh
Additional KWH $.01386 per KWh
Part 3 $.01386 per KWh
All Other Industrial $.01369

2008 Fourth Quarter (For Oct., Nov., & Dec. consumption
Residential - $.01958 per KWh
Outdoor Lighting - $.01958 per KWh
General Power
   Part 1 $.01923 per KWh
   Part 2 First 15,000 KWh $.01923 per KWh
     Additional KWH $.01883 per KWh
   Part 3 $.01883 per KWh
All Other Industrial $.01860

2008 Third Quarter (For July, Aug., & Sept. consumption)
Residential - $.00744 per KWh
Outdoor Lighting - $.00744 per KWh
General Power
   Part 1 $.00730 per KWh
   Part 2 First 15,000 KWh $.00730 per KWh
     Additional KWH $.00715 per KWh
   Part 3 $.00715 per KWh
All Other Industrial $.00707

2008 Second Quarter (For April, May, & June consumption)
Residential - $.00596 per KWh
Outdoor Lighting - $.00596 per KWh
General Power
   Part 1 $.00586 per KWh
   Part 2 First 15,000 KWh $.00586 per KWh
            Additional KWH $.00574 per KWh
   Part 3 $.00574 per KWh
All Other Industrial $.00567

2008 First Quarter (For Jan., Feb., & March consumption)
Residential - $.00290 per KWh
Outdoor Lighting - $.00290 per KWh
General Power
   Part 1 $.00284 per KWh
   Part 2 First 15,000 KWh $.00284 per KWh
            Additional KWH $.00279 per KWh
   Part 3 $.00279 per KWh
All Other Industrial $.00275

2007 Fourth Quarter (For Oct., Nov., & Dec. consumption)
Residential - $.00469 per KWh
Outdoor Lighting - $.00469 per KWh
General Power
   Part 1 $.00460 per KWh
   Part 2 First 15,000 KWh $.00460 per KWh
            Additional KWH $.00451 per KWh
   Part 3 $.00451 per KWh
All Other Industrial $.00445

2007 Third Quarter (For July, Aug., & Sept. consumption)
Residential - $.00094 per KWh
Outdoor Lighting - $.00094 per KWh
General Power
   Part 1 $.00093 per KWh
   Part 2 First 15,000 KWh $.00093 per KWh
            Additional KWH $.00091 per KWh
   Part 3 $.00091 per KWh
All Other Industrial $.00090

2007 Second Quarter (For April, May, & June consumption)
Residential - $.00091 per KWh
Outdoor Lighting - $.00091 per KWh
General Power
   Part 1 $.00090 per KWh
   Part 2 First 15,000 KWh $.00090 per KWh 
            Additional KWH $.00088 per KWh
   Part 3 $.00088 per KWh
All Other Industrial $.00087

2007 First Quarter (For Jan., Feb., & March consumption)
Residential - $.00011 per KWh
Outdoor Lighting - $.00011 per KWh
General Power
   Part 1 $.00011 per KWh
   Part 2 First 15,000 KWh $.00011 per KWh
            Additional KWH $.00010 per KWh
   Part 3 $.00010 per KWh
All Other Industrial $.00010