Frequently Asked Questions

Q. How much of an increase will I see on my bill after October 1?

A. Residential customers will see a combined rate increase on their bills just over 15%.  That equates to $12-$15 per 1,000 kilowatt hours of electricity used each month.

Q. Why are rates going up?

A. TVA is seeing dramatic increases in the prices of fuels used to generate much of the Valley's power supply.

Q. How much has TVA spent on fuel compared to this time last year?

A. TVA estimates fuel and purchased power costs to be about $2.9 billion this fiscial year, compared to $2.3 billion for the same period last year.

Q. Why doesn't TVA use more wind and solar power to reduce the impact of rising coal and natural gas costs?

A. TVA does use wind and solar power, but those renewable resources simply don't run all the time, and our customers need power 24 hours a day, seven days a week.

Q. Why does TVA need a Fuel Cost Adjustment?

A. Utilities throughout the country use an FCA to recover fuel and purchased power costs that are dictated by global markets and the events that drive them.  Historically, there have been periods when these costs become highly volatile, and the FCA helps to ensure that utilities do not suffer financial stress during these inflationary periods.