On July 1, Northcentral regrettably had to inform our community of a large rate increase directly related to the costs of generating fuel incurred by the Tennessee Valley Authority (TVA.) This, coupled with record heat-related energy consumption led to power bills unlike any we have seen before. Many in the community saw bills rise more than 40%. Northcentral saw its wholesale power bill to TVA increase nearly $4 million from July and $4.5 million from the same time last year. The costs were passed on to those consumers in the community in compliance with our contract with TVA.
Today we are pleased to announce that these fuel related costs are in decline. August fuel at 4.9 cents per kWh will fall to 3.2 cents per kWh for September. This, coupled with slightly milder temperatures, should ease the burden of the September electricity bill. This reduction will commence with first billing for usage in September 2022.
“We are pleased that the fuel component of our billing controlled by TVA have gone down. Though we had to share the burden of inflated costs over the summer, it’s good to know through our partnership with TVA we can also enjoy costs when they are in decline,” states Northcentral CEO Kevin Doddridge.
As the heat hasn’t completely left us, we can all take advantage of energy-saving measures at home to continue to reduce electricity consumption. For energy conservation tips, please visit our website at www.northcentralelectric.com.