Tennessee Valley Authority reports a record low fuel cost. Public relations officer Scott Brooks says that should be reflected in customers’ bills.
The low price of natural gas and the mild winter are responsible for the low cost. Brooks says this is the lowest level in six years and one of the lowest on record since 2006.
Unlike private companies TVA does not receive incentives or subsidies when fuel costs are low because they are a federal agency.
Brooks says TVA contracts with 154 local power companies. As part of these contracts power companies pass on the wholesale cost directly to the customer but each company adds on their charges, accounting for the price difference between companies.
