Close-up of energy bills and Smart Meter on a kitchen worktop

Understanding Your Power Bill

The Ups and Downs of Your Power Bill Explained

TVA serves 10 million consumers in seven states – but if you own a home or local business, you likely don’t receive a power bill directly from TVA. Instead, TVA provides electricity to 153 local power companies who then deliver power to your home or business.

All local power companies bill their customers differently. But all power bills have these three things in common:

Base rate (per kilowatt-hour) – This typically stays the same each month but may change by season. TVA’s Board of Directors sets the wholesale rate each year. Your local power company then adds its own charges to create the residential retail rate.
Fuel costs (per kilowatt-hour) – This rate is based on the cost of the fuel needed to produce the electricity you use. It can go up or down each month. This may or may not be listed as a separate line item on your bill.

Amount of power you choose to use – The number of kilowatt hours used is the most significant change from month to month, and it is usually connected to climate and temperature. If it’s very hot or very cold outside, you tend to use more power to keep your family comfortable. Because more power is needed during these temperature peaks, it drives up the cost of the fuel needed to produce that power.

The amount of power you use is the biggest factor in the cost of your power bill. It’s also the part over which you have the most control.

The summer and winter months are known as peak periods, when people use more electricity to heat and cool their homes. That’s often reflected in higher bills during this period. TVA and local power companies can help you find ways to save energy.

How Fuel Cost Impacts Your Bill

While TVA’s wholesale power rate is set yearly, the cost of fuel needed to produce electricity can change your bill. This charge is about one-third of the monthly wholesale rate TVA charges.

Your local power company’s bill should show you how many kilowatt-hours you use each month and may also include a separate line item for fuel costs. Contact your local power company if you need help reading your bill.

Power bill infographic showing a bar chart, donut chart, and a table with color-coded sections for Wholesale rate from TVA, Local Power Company Charges, Kilowatt/hour Used, and Total.

Energy Sources and Costs

Electricity is made from different resources, and each generation source has costs that can fluctuate:

Coal and gas plant fuel costs can change rapidly, but they are able to generate power 24 hours a day, seven days a week in any kind of weather.
Nuclear power operates 24 hours a day, seven days a week. Its fuel costs remain very stable.
Renewable energy like hydroelectric, solar and wind has no fuel cost, but it is only available some of the time. The sun isn’t always shining. The wind isn’t always blowing. Less rain can reduce the availability of hydroelectric power generation.

What We’re Doing

TVA monitors and plans for changing market conditions to mitigate fuel price volatility whenever possible. TVA’s residential rates are lower than those paid by over 80% of customers of the top 100 U.S. utilities, and industrial rates are lower than those paid by over 90% of customers of the top 100 U.S. utilities.

How To Save Money on Your Power Bill

What really makes a difference is how much power you use, which is often tied directly to the weather. There are some easy ways you can reduce your energy usage without making drastic changes to your comfort or lifestyle.

A teen girl creates on the floor, listening to music through wireless headphones in front of a cooling fan

Turn your thermostat up just one or two degrees and use fans to circulate air. Every degree can save you 3% per degree on your bill.
Close window coverings on the sunny side of your home or office.
If possible, avoid using ovens, dishwashers, clothes dryers and other appliances that generate heat in your home until late in the evening or early in the morning.

A mother holding her toddler in a pink sweater as the child reaches toward a wall thermostat

Turn your thermostat down just one or two degrees. Every degree can save you 3% per degree on your bill.
Warm air in your home rises, so reverse the direction of your ceiling fans to move air from your ceiling down toward the floor.
During sunny days, open window coverings on the sunny side of the house to get free heat from the sun but be sure to close them at night or on cloudy days to keep your heat inside.

An inspector explaining attic ductwork to a home owner

Use TVA Energy Right’s DIY Home Energy Assessment to find energy-saving opportunities. Complete the assessment and receive a free energy-saving kit with LED light bulbs, insulated socket sealers and more.
Seal up your home to keep cold or warm air inside: caulking around windows and doors, sealing air leaks around switches and outlets and, where possible, increasing the insulation (the “R-value”) in your walls, doors and windows.
Cash rebates for specific energy upgrades including air sealing, HVAC tune ups, and insulation upgrades through EnergyRight.
Home Uplift provides an average of $10,000 in free home energy upgrades to income-eligible customers.

How to Get Help with Your Power Bill

If you or someone you know is worried about making or missing a payment, there are energy assistance programs and agencies available to help.

Get help with your residential energy bill through the Low Income Home Energy Assistance Program. Visit TVA EnergyRight to find contact information for your local LIHEAP agency.

Visit EnergyRight

Ask your local power company about payment plans and levelized billing.

Local Power Company