TVA to Base Pricing Structure on Seasonal Periods:
Will Not Affect Overall Customer Bills
February 17, 2011
(Feb. 17, 2011) - TVA will change its retail base rate structure to reflect seasonal usage, starting with the April 2011 billing period. For MLGW residential customers, the change will have a minimal impact on overall customer bills.
The change will enable TVA to more accurately reflect fluctuating electricity costs on a seasonal basis. Under the new rate structure, TVA defines seasonal periods as Summer (June, July, August and September); Winter (December, January, February and March); and Transition (April, May, October and November.)
Retail rates will be slightly lower in transition months; . However, in during the winter and summer months, when electricity costs are at their highest, rates will be slightly higher.
Overall, however, there will be little impact on bills because the increase in TVA's fuel cost adjustment (FCA) will be offset by a decrease in TVA's base rates.
On an annual basis, the seasonal rate structure will produce no additional revenues for MLGW or TVA, though customers will benefit from pricing signals that could lead to more efficient usage during peak periods.
MLGW is the largest three-service public power utility in the nation, serving more than 429,000 customers in Memphis and Shelby County.
The change will enable TVA to more accurately reflect fluctuating electricity costs on a seasonal basis. Under the new rate structure, TVA defines seasonal periods as Summer (June, July, August and September); Winter (December, January, February and March); and Transition (April, May, October and November.)
Retail rates will be slightly lower in transition months; . However, in during the winter and summer months, when electricity costs are at their highest, rates will be slightly higher.
Overall, however, there will be little impact on bills because the increase in TVA's fuel cost adjustment (FCA) will be offset by a decrease in TVA's base rates.
On an annual basis, the seasonal rate structure will produce no additional revenues for MLGW or TVA, though customers will benefit from pricing signals that could lead to more efficient usage during peak periods.
MLGW is the largest three-service public power utility in the nation, serving more than 429,000 customers in Memphis and Shelby County.