Heading into summer, numbers on the thermometer are going up, and if you’re not careful, on your electric bill too. TVA explains what is causing the higher bills and gives money-saving advice.
Southern summers bring soaring temperatures and outdoor fun with family and friends. The summer heat can also burn your wallet if you waste electricity - TVA warns.
With inflation at a 40-year high, utilities across the nation are warning customers to prepare for high energy bills this summer. While inflation is playing a role in electricity prices, the real cause is higher natural gas prices due to geopolitical events, economic growth, and tight supply.
Natural gas is used for cooking, heating water and generating over 40% of America’s electricity.
TVA is working to address the run-up in natural gas prices to reduce the impact on power bills.
“We’ve seen natural gas prices increase to a 14-year high since April,” said Doug Perry, Tennessee Valley Authority senior vice president of Commercial Energy Solutions. “We are using every tool in our toolbox to provide you with clean, reliable power and keep money where it belongs - in your pocket.”
TVA’s monthly Fuel Cost Adjustment for July has hit the highest amount since it started in 2011 – 3.829 cents per kWh. The FCA amount changes monthly as fuel prices fluctuate, based on the actual cost TVA pays for fuel. To protect customers, 65% of TVA’s rates are not affected by fuel. The 35% of the rate that is affected by fuel will immediately lower as fuel prices decrease.
For the average household, that could mean an extra $18 on your power bill in July.
Pennsylvania regulators said last month that customers will see increases of 6% to 45% effective June 1. Eversource, which serves New Hampshire, Massachusetts, and Connecticut, said at the start of the year that customers could see between a 23% and 25% increase through at least June 30. And South Carolinians are facing jumps of 5% to 19%.
Perry notes that about 80% of the people served by the nation’s top 100 utilities pay more for energy than people in the TVA service area, and TVA’s industrial rates are lower than more than 95% of the nation’s top utilities.
While utilities across the country are affected by the fuel price increases, Perry points to TVA’s diversified generating portfolio as a strategic advantage. Since 2013, TVA has invested about $14 billion in new generating assets. Moving forward, TVA will invest over $2 billion in transmission system improvements, through 2025.
TVA wants to help make your home more efficient to save energy this summer. Visit energyright.com/residential/ for no-cost or low-cost energy-saving tips or schedule a free in-person or virtual home energy evaluation. Homeowners can also check their eligibility for financing for home energy upgrades by visiting energyright.com/residential/financing/.
TVA’s Home Uplift program is also available in many areas to help those struggling with a heavy energy burden. Since 2018, TVA and our partners have invested over $40 million to provide valuable energy upgrades to over 3,700 income-qualified families through the end of this year. This program assists homeowners with no-cost improvements – saving them an average of 25% on their power bills annually. Home Uplift is offered in partnership with local power companies across the Tennessee Valley and is now open to renters were allowed by local power companies. A manufactured home program is being tested with six local power companies.
Local assistance programs also offer relief, such as the Low Income Home Energy Assistance Program. Homeowners and renters can also check with their local power companies for additional assistance programs.