TVA Fuel Cost Adjustments for July & August 2022

Due to worldwide events and supply chain issues, the monthly fuel cost adjustment passed down to local power companies by the Tennessee Valley Authority (TVA) has increased. These fuel costs are the price TVA pays for natural gas, coal, and other power purchases needed to generate electricity across the Tennessee Valley.

While TVA has a diverse generation mix, including a robust network of hydroelectric dams, solar sites, wind assets, and nuclear units, the fuel costs for natural gas and other power plants are experiencing sharp increases.

The monthly fuel cost is a component of Huntsville Utilities’ per kilowatt hour charge for residential and commercial electricity. While the monthly fuel cost does vary month to month, the variance is usually just a few tenths of a cent. Prior to recent events, that rate typically moved between 1.5 to 2.5 cents per kWh. However, in June the fuel cost increased to 2.715 cents. In July, it increased to 3.829 cents, and for August, TVA is forecasting a fuel cost adjustment of 4.612 cents.

Because of this sharp rise in fuel costs, the residential rate per kWh rate for June increased to 10 cents, then to approximately 11 cents in July, and will increase to roughly 12 cents in August.

While a change of three cents over three months may not sound like much, it can add up quickly if customers use large amounts of electricity.

Huntsville Utilities wants to help customers control their energy usage and costs. Please visit our website (www.hsvutil.org) and follow us on social media (Facebook, Twitter, Instagram, LinkedIn, YouTube) for information on how to reduce electric consumption and lower your bills. Customers can also call the Customer Information Center at 256-535-1200 with questions.

Huntsville Utilities is a not-for-profit, public utility owned by the City of Huntsville, Alabama, serving the residents of Huntsville and Madison County. The utility currently has approximately 205,000 electric, 104,000 water, and 60,000 natural gas customers. Our mission is to strengthen trust in Huntsville Utilities, our vision is to deliver excellent customer experiences, and our values are to do what’s right, build community, and get better every day.