Fuel cost pressures seen throughout the world have recently hit the utility industry. This week, the Tennessee Valley Authority (TVA) announced that their total monthly fuel cost for July has more than doubled compared to their three-year average. TVA fuel is the generation fuel required to produce electricity and includes the cost of uranium, coal, oil, natural gas, and off-system purchased power. This increase is mostly attributed to the global natural gas market and is expected to persist throughout the summer months. Exceeding 30% of the retail rate, this cost must be passed on to retail consumers to remain in compliance with our power contract with TVA.
Due to TVA’s rising fuel costs and increased electricity consumption during the summer season, Northcentral members can expect higher than normal utility bills in the upcoming months.
“We work diligently to control what we can to minimize rate increases for our members,” states Northcentral CEO and General Manager Kevin Doddridge. “It is unfortunate that the price increases we all face at home are now affecting the utility industry in a way that further impacts the family budget. Power supply and reliability remain strong through our partnership with TVA. The diversity of generation sources truly minimizes market impacts such as increased prices in fossil fuels and maintains system reliability.”
Northcentral members can take energy-saving measures at home to minimize the impact of these increased costs. Air conditioning accounts for the majority of summer utility bills. Using shades or curtains to cover windows from the summer sun and setting home thermostats to a higher temperature will result in fewer kilowatt hours billed. For more energy conservation tips, please visit our website at www.northcentralelectric.com.