tva fuel cost

5/7/2014 Volunteer Energy Cooperative

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TVA Fuel Cost

What is the Fuel Cost Adjustment?

Since January 2007, Volunteer Energy Cooperative (VEC) customer bills have included a separate Fuel Cost

Adjustment, a pass-through charge from the Tennessee Valley Authority (TVA). VEC does not receive any ofthe FCA charges – The funds collected through the FCA go directly to TVA. In April 2010, the way in which

the Fuel Cost Adjustment is calculated will mean a change in the amount that is charged to VEC customers.

Why charge a Fuel Cost Adjustment?

Volunteer Energy Cooperative buys power from TVA and provides it to our customers.

About 75% of TVA’s power supply comes from fuels used to make electricity – nuclear, coal, oil and naturalgas. When the prices of these fuels change – because of weather, the economy and the global supply and

demand for fuels – TVA’s costs change. This fuel cost increases or decreases monthly, depending on how muchTVA pays for fuel and purchased power.

In the past, a portion of TVA’s cost of fuel were included in the base rate part of your electric bill – the part

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that primarily covers TVA’s cost of building and operating power plants and transmission lines. The rest of

TVA’s fuel costs were recovered through the monthly fuel cost adjustment on customer bills.

Effective with April 2011 billing, 100% of TVA’s fuel costs will be included in the Fuel Cost Adjustment. Thatmeans the new total monthly fuel cost amount on customer bills will be larger than the fuel amount in the past –

because it contains the fuel costs that had been in the base rate. However, the base rate portion of your bill iscorrespondingly lower. This change simply moves charges from one portion of your bill to another.

Why is TVA changing the Fuel Cost Adjustment?

Putting all of the fuel in one category is an easier and more transparent way to reflect fuel costs. This change ispart of an overall change in the pricing structure of TVA’s electricity they sell to VEC. Fuel costs are a

significant component of TVA’s overall costs, and TVA has required VEC to make this change in the retail ratestructure.



TVA Fuel Cost Adjustments will be:

May 2014 consumption

Residential: 2.817¢ per kWh

Outdoor Lighting: 2.817¢ per kWhGeneral Power

Part 1: 2.768¢ per kWh

Part 2: First 15,000 KWh: 2.768¢ per kWh

Additional KWH: 2.711¢ per kWhPart 3: 2.711 per kWh

All Other Industrial: 2.678¢

April, 2014 consumption Residential: 2.984¢ per kWh

Outdoor Lighting: 2.984¢ per kWh

General PowerPart 1: 2.932¢ per kWh

Part 2: First 15,000 KWh: 2.932¢ per kWh

Additional KWH: 2.871¢ per kWh

Part 3: 2.871 per kWhAll Other Industrial: 2.837¢



March, 2014 consumption

Residential: 2.913¢ per KWh

Outdoor Lighting: 2.913¢ per KWhGeneral Power

Part 1: 2.861¢ per KWh

Part 2: First 15,000 KWh: 2.861¢ per KWh

Additional KWH: 2.803¢ per KWhPart 3: 2.803 per KWh


February, 2014 consumption


Outdoor Lighting: 2.363¢ per KWh

General PowerPart 1: 2.322¢ per KWh


Additional KWH: 2.274¢ per KWh

Part 3: 2.274 per KWhAll Other Industrial: 2.246¢

January, 2014 consumption

Residential: 2.305¢ per KWhOutdoor Lighting: 2.305¢ per KWh

General Power

Part 1: 2.264¢ per KWhPart 2: First 15,000 KWh: 2.264¢ per KWh


Part 3: 2.218 per KWh


December, 2013 consumption




Part 2: First 15,000 KWh: 2.123¢ per KWhAdditional KWH: 2.079¢ per KWh



October, 2013 consumption










September, 2013 consumption







August, 2013 consumption







July, 2013 consumption Residential: 2.427¢ per KWh


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June. 2013 consumption








May, 2013 consumption










April, 2013 consumption



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November, 2012 consumption








October, 2012 consumptionResidential: 2.737¢ per KWh


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July, 2012 consumption


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June, 2012 consumption



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April, 2012 consumption


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November, 2011 consumption



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October, 2011 consumption








September, 2011 consumptionResidential: 2.887¢ per KWh


General Power









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June, 2011 consumptionResidential: 2.564¢ per KWh




General Power







Residential: 2.543¢ per KWhOutdoor Lighting: 2.543¢ per KWhGeneral Power




April, 2011 consumptionResidential: 2.575¢ per KWh



Additional KWH: 2.477¢ per KWhPart 3: 2.477¢ per KWhAll Other Industrial: 2.477¢

March, 2011 consumptionResidential: $0.00664 per KWh

Outdoor Lighting: $0.00664 per KWhGeneral Power

Part 1: $0.00653 per KWhPart 2: First 15,000 KWh: $0.00653 per KWhAdditional KWH: $0.00639 per KWh

Part 3: $0.00639 per KWhAll Other Industrial: $0.00631

February, 2011 consumptionResidential: $0.00472 per KWh

Outdoor Lighting: $0.00472 per KWhGeneral PowerPart 1: $0.00464 per KWh

Part 2: First 15,000 KWh: $0.00464 per KWhAdditional KWH: $0.00455 per KWh

Part 3: $0.00455 per KWh



All Other Industrial: $0.00449


Residential: $0.00594 per KWhOutdoor Lighting: $0.00594 per KWhGeneral Power

Part 1: $0.00583 per KWhPart 2: First 15,000 KWh: $0.00583 per KWh

Additional KWH: $0.00571 per KWhPart 3: $0.00571 per KWh


December, 2010 consumptionResidential: $0.00516 per KWh



Additional KWH: $0.00496 per KWhPart 3: $0.00496 per KWhAll Other Industrial: $0.00490

November, 2010 consumptionResidential: $0.00796 per KWh

Outdoor Lighting: $0.00796 per KWhGeneral PowerPart 1: $0.00782 per KWh



October, 2010 consumptionResidential: $0.01221 per KWhOutdoor Lighting: $0.01221 per KWh

General PowerPart 1: $0.01200 per KWh




Residential: $0.00714 per KWhOutdoor Lighting: $0.00714 per KWh

General Power



Part 1: $0.00701 per KWh

Part 2: First 15,000 KWh: $0.00701 per KWhAdditional KWH: $0.00687 per KWhPart 3: $0.00687 per KWh



Residential: $0.00550 per KWhOutdoor Lighting: $0.00550 per KWh

General PowerPart 1: $0.00541 per KWhPart 2: First 15,000 KWh: $0.00541 per KWh




Residential: $0.00437 per KWhOutdoor Lighting: $0.00437 per KWhGeneral Power




June, 2010 consumptionResidential: $0.00215 per KWh



Additional KWH: $0.00206 per KWhPart 3: $0.00206 per KWhAll Other Industrial: $0.00204

May, 2010 consumptionResidential: -$0.00142 per KWh

Outdoor Lighting: -$0.00142 per KWhGeneral Power

Part 1: -$0.00139 per KWhPart 2: First 15,000 KWh: -$0.00139 per KWhAdditional KWH: -$0.00137 per KWh

Part 3: -$0.00137 per KWhAll Other Industrial: -$0.00135



April, 2010 consumptionResidential: -$0.00209 per KWh

Outdoor Lighting: -$0.00209 per KWhGeneral PowerPart 1: -$0.00205 per KWh

Part 2: First 15,000 KWh: -$0.00205 per KWhAdditional KWH: -$0.00201 per KWh


March, 2010 consumptionResidential: -$0.00598 per KWhOutdoor Lighting: -$0.00598 per KWh

General PowerPart 1: -$0.00588 per KWh




Residential: -$0.00933 per KWhOutdoor Lighting: -$0.00933 per KWh


Part 2: First 15,000 KWh: -$0.00917 per KWhAdditional KWH: -$0.00898 per KWhPart 3: -$0.00898 per KWh

All Other Industrial: -$0.00887


Residential: -$0.00866 per KWhOutdoor Lighting: -$0.00866 per KWhGeneral Power

Part 1: -$0.00851 per KWhPart 2: First 15,000 KWh: -$0.00851 per KWh

Additional KWH: -$0.00833 per KWhPart 3: -$0.00833 per KWh

All Other Industrial: -$0.00823

December, 2009 consumptionResidential: -$0.00717 per KWh


Part 1: -$0.00705 per KWhPart 2: First 15,000 KWh: -$0.00705 per KWh



Additional KWH: -$0.00690 per KWh


Beginning November 1, 2009 TVA Fuel Cost Adjustments will be:

November, 2009 consumptionResidential: -$0.00335 per KWh


Part 1: -$0.00329 per KWhPart 2: First 15,000 KWh: -$0.00329 per KWhAdditional KWH: -$0.00322 per KWh


October, 2009 consumptionResidential: -$0.00221 per KWhOutdoor Lighting: -$0.00221 per KWh




2009 Third Quarter (For July, August & Sept. consumption)

Residential – $.00570 per KWhOutdoor Lighting – $.00570 per KWh

General PowerPart 1 $.00560 per KWh

Part 2 First 15,000 KWh $.00560 per KWhAdditional KWH $.00549 per KWhPart 3 $.00549 per KWh

All Other Industrial $.00542

2009 Second Quarter (For April, May, & June consumption)


General PowerPart 1 $.00863 per KWhPart 2 First 15,000 KWh $.00863 per KWh

Additional KWH $.00845 per KWhPart 3 $.00845 per KWh


2009 First Quarter (For Jan., Feb., & Mar. consumption




General PowerPart 1 $.01415 per KWhPart 2 First 15,000 KWh $.01415 per KWh



2008 Fourth Quarter (For Oct., Nov., & Dec. consumption

Residential – $.01958 per KWhOutdoor Lighting – $.01958 per KWhGeneral Power

Part 1 $.01923 per KWhPart 2 First 15,000 KWh $.01923 per KWh



2008 Third Quarter (For July, Aug., & Sept. consumption)Residential – $.00744 per KWh

Outdoor Lighting – $.00744 per KWhGeneral Power

Part 1 $.00730 per KWhPart 2 First 15,000 KWh $.00730 per KWhAdditional KWH $.00715 per KWh

Part 3 $.00715 per KWhAll Other Industrial $.00707

2008 Second Quarter (For April, May, & June consumption)Residential – $.00596 per KWh

Outdoor Lighting – $.00596 per KWhGeneral PowerPart 1 $.00586 per KWh

Part 2 First 15,000 KWh $.00586 per KWhAdditional KWH $.00574 per KWh


2008 First Quarter (For Jan., Feb., & March consumption)Residential – $.00290 per KWhOutdoor Lighting – $.00290 per KWh





Part 3 $.00279 per KWh


2007 Fourth Quarter (For Oct., Nov., & Dec. consumption)Residential – $.00469 per KWh


Part 1 $.00460 per KWhPart 2 First 15,000 KWh $.00460 per KWh

Additional KWH $.00451 per KWhPart 3 $.00451 per KWhAll Other Industrial $.00445

2007 Third Quarter (For July, Aug., & Sept. consumption)Residential – $.00094 per KWh


Part 1 $.00093 per KWhPart 2 First 15,000 KWh $.00093 per KWhAdditional KWH $.00091 per KWh


2007 Second Quarter (For April, May, & June consumption)Residential – $.00091 per KWhOutdoor Lighting – $.00091 per KWh




2007 First Quarter (For Jan., Feb., & March consumption)



Part 2 First 15,000 KWh $.00011 per KWhAdditional KWH $.00010 per KWhPart 3 $.00010 per KWh




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