Fayetteville Public Utilities announced this week that the Tennessee Valley Authority plans to decrease its Fuel Cost Adjustment for the third straight quarter, effective July 1.

The July 1 fuel cost decrease will be approximately 4.1 percent reduction on total wholesale rates charged to TVA distributors across the valley.

Overall, the decrease for this quarter will bring the fuel cost adjustment to its lowest level in more than a year.

"Because the FCA is a per kilowatt-hour charge, amounts that consumers save will depend on how much energy they use. Savings across the Tennessee Valley will vary, but residential customers here can expect a decrease that ranges from $2 to $5 in their monthly power bills," says Britt Dye, Fayetteville Public Utilities' CEO and General Manager.

"The reductions received in January, April and July should basically roll back the fuel cost adjustment increase from last fall," says Dye referring to the October 2008 overall fuel cost increase of 17%.

"Last quarter, TVA lowered the fuel cost by seven percent on the wholesale cost," says Dye.  "Prior to that, a six percent reduction in the FCA was given in January."

The recent decreases in the fuel costs have allowed electric rate payers some relief in their energy bills in the midst of overall economic hard times. 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 went into effect April 1, customers paid $133.68 for the same amount of electricity used. This was 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.

When the July 1 fuel cost decrease goes into effect, Fayetteville Public Utilities electric customers using an average of 1,330 kilowatt-hours will see their bills decrease to $129.64. This is a savings from June to July of $4.04 for the same amount of electricity used.

The costs associated with generating and supplying electric power have decreased allowing TVA to reduce total average wholesale rates.  The price of coal and natural gas that are used as fuels in TVA power plants has declined in recent months. In addition, current economic conditions have resulted in lower power sales for TVA which further reduces the fuel and purchased power costs as well.

"Please keep in mind that, even with a reduction in the fuel cost through TVA, summertime temperatures and the use of air conditioning may increase our overall monthly electric use," he adds. "Your total bill amount may not reflect a savings due to your higher electric use, but the price you pay per kilowatt-hour for the fuel cost will decrease." Dye adds.

All Fayetteville Public Utilities electric bills calculated and mailed after July 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. 

FPU reminds its customers to take part in the TVA 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.

FPU also 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 at the right of our web site's Home Page.  From there you can also access the energy calculator, valuable energy efficiency tips and other programs available from TVA, including details about the heat pump program.