Maryville Electric Department Response to High Prices
Community, Featured Stories, News, Press Release August 16, 2022
MARYVILLE, TENNESSEE – The Maryville Electric Department is aware that many electric bills are noticeably higher this month compared to similar months in the past. After July, many Maryville residents have been concerned about raises in monthly electricity prices.
What is Maryville City Saying About It?
Following, this increase can be contributed to a couple things. Consistently high temperatures cause HVAC systems to operate longer to maintain comfortable interior temperatures which means the monthly electric usage (kwh) is higher. This month, TVA’s fuel cost adjustment has caused end-user rates to be significantly higher than in recent history. Each customer bill includes a “Fuel Cost Adjustment” that goes directly to TVA to help pay for the volatility of fuels used to generate electricity.
TVA writes on their website:
“TVA’s mission is to provide rates as low as feasible, so we dispatch our generation fleet based on least-cost principles. Each month, TVA determines the hourly forecast of energy needed and then determines the least cost manner to serve that energy. Recognizing that forecasts are never perfect, there is a true-up mechanism that collects or refunds the difference between the forecast and actual fuel expenses and spreads that difference out over a couple months. By managing the fuel costs in this manner, TVA can remove the volatility of commodity markets and provide a more stable environment for our customers.”
This means that an increase is seen on August bills to account for the TVA Fuel Cost Adjustment. Currently, the August Adjustment rate is 4.99 cents per kWh used in residential consumption, as compared to July (4.149 cents per kWh) and June (2.942 cents per kWh). As of now, the Maryville Electric Department does not have September 2022 Adjustments but will provide updates as we receive more information.
If you are seeing higher bills for the summer months, the TVA Fuel Cost Adjustment is likely a major part of increasing bill amounts. To reduce the amount of electricity your home uses, the Maryville Electric Department suggests reducing lighting in unoccupied areas, unplugging unused equipment in residences and businesses, and adjusting thermostat temperatures in areas that are usually unoccupied. TVA also suggests scheduling an In-home Energy evaluation if you have concerns about your electricity usage. You can schedule an appointment using this link: https://energyright.com/
If you have questions or concerns, please call (865) 273-3456 during business hours for more information.
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