Customers can
expect a $1 to
$3 decrease in
usage fees

By Mary Garrison
Tribune-Courier Features Editor
mgarrison@tribunecourier.com

MARSHALL COUNTY – The average consumer of electricity has received a welcome change of pace in the recent winter months. Between 2007-2008, skyrocketing fuel costs and drought were driving Tennessee Valley Authority’s fuel cost adjustment through the roof. TVA provides approximately 72 percent of the region’s electricity to local distributors such as West Kentucky Rural Electric and Benton Electric System.

According to TVA, the company produces electricity through four different means: hydro, coal, natural gas and nuclear. When the costs of these fuels change, the cost to produce electricity also changes.

Following Hurricanes Katrina and Rita, fuel costs spiked, prompting TVA to implement a fuel cost adjustment procedure for each quarter. The company makes an estimate based on a forecast of anticipated fuel cost for the month and the amount collected through rates. When TVA goes over that figure, costs are recovered in the following month. When the company goes under the estimate, the percentage is credited back to users.

While the FCA used to be calculated on a quarterly basis, within the last six months, TVA has shifted to a monthly figure.

At the end of 2008, the first quarter of 2009, the FCA was at its highest point, at a 16.9 percent increase; however, since that time, the figure has steadily declined.

As of the beginning of this month, the FCA had dropped for the seventh consecutive time, bringing that number down to -.799 — a credit of .799 cents per kilowatt hour to users. The credit will average any where from a $1 to $3 savings in residential electricity costs.

The decline in costs comes not only from the decrease in the expense of fossil fuels, but from the increased use of hydro electric production, TVA’s most inexpensive means of producing electricity.

From 2007 - 2008, hydro production had been dropped from a standard of 50 to 70 percent to approximately 30 percent due to drought. Now that the effects of the drought have passed, TVA can resort back to its primary means of production.

It’s a welcome change, particularly in the winter months, when electric bills can be more costly. Still, WKRECC President and CEO David Smart said there are still other ways in which residents can save on electricity costs.

 Make minor repairs in the home. Weather stripping and shoring up windows can save several dollars on home heating and air.

 Wait to operate appliances until later in the evening. When electricity producers are closer to meeting facility capacity, the cost to generate electricity increases. Waiting until after 8 p.m. to run dishwashers and washing machines can save several cents per kilowatt hour.

 Use the microwave rather than the stove or oven when possible.

 Turn off lights, appliances and other home electronics with a power bar whenever not in use. Although devices such as televisions and stereos may be turned off, when plugged in, they still pull a charge.

 Use the sleep mode on home computers.

 Turn the heat down to 68 degrees when it’s cool outside. When no one is home, turn it down even lower.

 Replace light bulbs in the home with compact flourescent bulbs. They use an estimated 75 percent less energy and last considerably longer than the average incandescent bulb.