It’s a standard weather calculation that shows how energy usage correlates to the outside temperature. The higher the number of degree days, the more the outside temperature is likely to impact your energy usage.
Degree days are the calculation of how much the average daily temperature varies from a base standard of 65 degrees. The hotter or colder the weather, the more degree days you’ll see on your bill.
How degree days are calculated:
Example: high temperature of 40 degrees, low temperature of 10 degrees makes the average temperature for the day 25 degrees (40+10=50, 50 ÷ 2=25). Subtract the average temperature from the base to get 40 degree days (65-25=40).
TVA charges customers a higher rate in the summer (June- September) and winter (December-March), when it costs the most to produce power because of increased customer usage. Rates are lower during transitional months (April-May & October-November).
During mild weather, TVA can get by using its hydroelectric dams, coal units and nuclear units to meet the demand for electricity. These are the cheapest ways for TVA to generate power. On a hot day, TVA must add its natural gas-fired power plants and purchase additional power from other generators to meet the demand. These are the most expensive ways to produce power.
Recurring Monthly Charges
NES Service ChargeThe monthly service charge is necessary to cover the recurring costs of providing electric service, such as installation, maintenance and replacement of poles, transformers and other equipment, upgrades to meet the demands of our growing population, tree trimming, payment processing and customer service.
Energy Usage Residential Charge Supplemental Residential Charge Tier 1 0-500 kWh $11.50 $15.10 Tier 2 501-2000 kWh $14.90 $18.50 Tier 3 2001-4000 kWh $18.90 $22.50 Tier 4 More than 4000 kWh $29.40 $33.00
Grid Access ChargeTVA’s Grid Access Charge (GAC) is necessary to cover the fixed cost associated with maintaining the electric grid. NES had to design a fair and equitable way to pass those costs through to customers. The rate is based on your average usage for the past 12 months.
Energy Usage Residential Charge Supplemental Residential Charge Tier 1 0-500 kWh $4.10 $2.05 Tier 2 501-2000 kWh $6.66 $4.61 Tier 3 2001-4000 kWh $6.66 $4.61 Tier 4 More than 4000 kWh $7.17 $5.12
COVID-19 Relief CreditFrom October 2020 through September 2021, Residential energy rates are being reduced in relation to a decrease in TVA’s wholesale rates for pandemic relief. The energy rate is currently reduced by -0.0990 cents per kilowatt-hour.
Current Power Rates (Transition)
General Power Rate
Schedule Demand GSA-1 Less than or equal to 50 kW GSA-2 Greater than 50 kW and less than or equal to 1,000 kW GSA-3 Greater than 1,000 kW and less than or equal to 5,000 kW LGS-1 Greater than 5,000 kW and less than or equal to 15,000 kW LGS-2 Greater than 15,000 kW and less than or equal to 25,000 kW LGS-3 Greater than 25,000 kW
Optional Commercial Rates
Demand ChargesDemand is a measurement of how much energy is used by a customer at any one time. Since electricity cannot be stored, TVA must have the capacity to generate enough power to instantly meet each customer’s highest demand for power.
Your demand charge is based on the highest 30-minute period of electricity used during your monthly billing cycle. The rate GSA-1 and GSA-2 customers pay is $5.05 per kW for the first 50. The rate for demand above 50 kW is based on GSA-2 and GSA-3 rate tariffs.
To reduce your demand, stagger the use of equipment that requires large amounts of power to operate, such as air handlers and air conditioning compressors. By operating equipment at different times instead of simultaneously, you reduce the demand on the system and lower your demand charges.
From October 2020 through September 2021, GSA-1, GSA-2 AND GSA-3 energy rates are being reduced in relation to a decrease in TVA’s wholesale rates for pandemic relief. The energy rate is currently reduced by -0.0990 cents per kilowatt-hour.
Small Manufacturing Credit
This credit is available for GSA-3 customers whose SIC codes are 2000 through 3999. The credit is applied as $.01076 per kWh, $1.38 per kW for the first 1,000 kW of metered demand, and $1.63 per kW for additional kW of metered demand above 1,000 kW.
Tax Exemption Status
Non-profit customers, and manufacturing customers that have a reduced tax rate, must present a certificate of exemption for each separate location they operate. A campus with buildings spanning multiple streets is considered one location. You may submit a copy of your tax exemption certificate via email to [email protected], by fax to 615-732-6774, or by mail to: Nashville Electric Service, Rates Billing & Collections – Room 422, 1214 Church St, Nashville, TN 37246.
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