The fuel cost adjustment, also known as power cost adjustment, is a per kilowatt hour charge by TVA. It allows TVA to recover costs associated with the volatility of market-based fuels (coal, natural gas) and purchased energy costs. The amount of the fuel cost adjustment is determined by calculating the difference between the amount TVA expected to pay for fuel in a given month (included in base rates) and the costs they actually incur.

Beginning October 1, 2009, the fuel cost adjustment will be calculated monthly rather than quarterly. For the month of September 2010, the rate for residential members is .00713 cents per kilowatt hour used.

For residential members, here are a few examples of the adjustment for the month of September 2010:

• 1,000 kilowatts at .00713 = $7.13
• 1,386 kilowatts at .00713 = $9.88
• 2,500 kilowatts at .00713 = $17.83
  

You have control. By lowering your consumption you can reduce the amount of your electric bill and the Power Cost Adjustment. Here are some points to remember.

Increased usage can be because more heating is required due to colder temperatures, you use more hot water, or cook more during holidays. Knowing What Uses Watts can help you control electric usage. Read more...