TVA Fuel Cost
The fuel cost 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 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 began being calculated monthly rather than quarterly. For the month of November 2011, the rate for residential members is .02464 cents per kilowatt hour used.
For residential members, here are a few examples of the fuel cost for the month of November 2011:
- 1,000 kilowatts at .02464 = $24.64
- 1,400 kilowatts at .02464 = $34.50
- 2,500 kilowatts at .02464 = $61.60
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