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Tuesday, December 1, 2009

How About Some Less Expensive Energy for the Holidays?

The rate you pay for electric power will, once again, go down a little in December. This is another rather bizarre situation wherein the EPB rate is increasing overall just under 3%, but the TVA FCA (Fuel Cost Adjustment) is going down about 5.5% at the same time. That means that our customers will see an average reduction in the rate they pay of about 2.5% for December. But, as we have warned you in the past, don’t get too used to that low rate because it will surely go back up over the next several months. Of course, the amount of your bill will depend, as always, on how much energy you use.

For the EPB’s part, the rate increase is necessary raise the funds necessary to make the payments on the new substation we are building. This new facility will provide Glasgow with a second route for energy to enter the city and will increase our network dependability as we strive to refurbish the old single delivery point substation that has served our community for the last thirty five years. Construction is already taking place on this new substation and it should be in service by the end of 2010.

If you want to examine the newest effective electric power rate schedule in detail, you can get a paper copy at our office or you can view it online at this link.

The TVA FCA has been going down now for the last several months due to the fact that this unusually mild weather, coupled with our economic doldrums, has resulted in far less energy being consumed. Of course, with less energy consumption, there comes a dramatically reduced need to purchase fuel to consume in TVA’s production of electric power. However, their forecast is for this trend to reverse (who doesn’t want to forecast that the economy will improve?) and that the FCA will start increasing the net cost of power for the next six months.

Of course, all of this rate activity will ultimately result in a total change in the way energy is sold throughout the region which will take effect in October 2010. This change will be the new TOU (Time Of Use) rate that we have been talking with you about for many months. But, until then, enjoy the lower power rates for your holiday events during December! For, just like most good things (and bad for that matter), this too shall pass.

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