More good news comes as Fayetteville Public Utilities announces that the Tennessee Valley Authority plans to decrease the amount of its Fuel Cost Adjustment effective April 1.

Last October, TVA's overall rate increased by 20%. In recent months, the costs associated with generating and supplying electric power have decreased allowing TVA to reduce total average wholesale rates.

Last quarter, TVA lowered the fuel cost by six percent on the wholesale cost. With the April reduction of seven percent, this gives FPU customers some relief on their bills during these difficult economic times.

Because the fuel cost adjustment amount is based on individual consumer's kilowatt-hour charges, the FCA charge on each consumer's bill will vary depending on the amount of energy used.

Prior to the decrease in January, FPU customers using an average of 1,330 kilowatt-hours per month paid $147.88 for their electricity. When the fuel cost decreased in January, customers using the same 1,330 kilowatt-hours paid $141.08.  When the April decrease goes into effect, customers will be paying $133.68 for the same amount of electricity used. That's a $7.40 per month decrease from March to April's billing based on the average electric bill reflecting the 1,330 kilowatt-hour consumption.

Please keep in mind that, even with a reduction in the fuel cost rate through TVA, springtime temperatures and how much we heat our homes will continue to have an effect on our total bill amount.

All Fayetteville Public Utilities electric bills calculated and mailed after April 1, 2009 will reflect the decreased amount in the fuel cost adjustment charged by TVA.

For a complete listing of FPU electric rates, click on the RATES section of our web site.

TVA says that their cost of power production has decreased over the last quarter and that its projections for this quarter are more favorable than once speculated. Recent reductions in purchased power and the decline in natural gas prices are the two key factors in TVA reducing the actual costs and forecast.

TVA began using a fuel cost adjustment mechanism in October 2006 after experiencing a spike in fuel costs caused by Hurricanes Katrina and Rita. Utilities across the country use such mechanisms to help recover the costs they must pay for the fuels used to generate electricity and for additional purchased power. The adjustment is part of consumer power bills and can go up or down, depending on quarterly increases or decreases in these costs.

Currently FPU participates in TVA's Energy Right programs that help customers conserve energy and install energy-efficient products to improve their homes. The Energy Right programs encourage customers to install higher efficiency heating and cooling systems through the electric heat pump and dual fuel heat pump financing programs which offer low-interest loans to those planning to install new heating and cooling systems in their homes. Regular interest rates are at 8%, but a special 6% financing is still available to those installing a 14 SEER system or greater now through March 31, 2009.

FPU offers rebates for energy-efficient water heater purchases. Call FPU at 433-1522 for details on how you qualify.

To further promote energy efficiency, FPU sells the compact fluorescent light bulbs to help consumers save up to 75% on their home lighting costs.

FPU also offers the Energy Right Home e-Valuation self-audit for energy efficiency which also includes a free conservation kit. The self-audit gives you professional advice on improving the energy efficiency of the home based on your individual answers supplied in the audit. The free conservation kits will be available to all those who complete the self-audit from now until Sept. 2009.

An online link to the Home e-Valuation self-audit can be found on our web site.  From here you can also access the energy calculator, valuable energy efficiency tips and other programs available from TVA, including details about the heat pump program.