Pricing
Seasonal and time-of-day prices for hourly delivered energy output are set as of the date of execution of the contract agreement, reflecting varying demand for power at different seasons and times of the day.
A typical annual average price could be 5.5 cents per kWh, with pricing varying between 16 cents per kWh on hot, high-demand afternoons in July and August, and 3.5 cents in early morning hours in the fall and spring.
The same prices will apply to all technologies, with the average hourly base price escalated annually by a constant percentage over the length of the contract.
Because prices for generation are higher during periods of peak demand, technologies that operate during peak hours (for example, solar) will receive the benefit of higher prices during those periods.
Pricing Example
Contract prices escalate 3 percent per year beginning in 2012. TVA can adjust the relevant levels of seasonal and time-of-day prices by 1 percent per year, but the annual average will always escalate at 3 percent. For complete details of pricing, see the Renewable Standard Offer Contract.
| Month | Time of Day (CPT) | Base Price (¢/kWh) |
|---|---|---|
| July & August | Mon-Fri 12pm-8pm | 15.966 |
| Mon-Fri 6am-12pm and 8pm-12am; Sat & Sun 6am-12am |
6.420 | |
| Everyday 12am-6am | 4.078 | |
| June & September | Mon-Fri 12pm-8pm | 8.139 |
| Mon-Fri 6am-12pm and 8pm-12am; Sat & Sun 6am-12am |
5.263 | |
| Everyday 12am-6am | 3.963 | |
| January & February | Mon-Fri 6am-10pm | 5.937 |
| Mon-Fri 10pm-12am; Sat & Sun 6am-12am |
4.868 | |
| Everyday 12am-6am | 4.278 | |
| December & March | Mon-Fri 6am-10pm | 5.596 |
| Mon-Fri 10pm-12am; Sat & Sun 6am-12am |
4.717 | |
| Everyday 12am-6am | 4.151 | |
| April, May, October, & November | Mon-Fri 6am-10pm | 5.616 |
| Mon-Fri 10pm-12am; Sat & Sun 6am-12am |
4.431 | |
| Everyday 12am-6am | 3.793 |