FPU announces two-fold electric rate increase for December

Fayetteville Public Utilities’ electric customers will see a two-fold increase in their December bills due to TVA’s winter period energy rates and TVA’s total monthly fuel cost for the month.

According to information supplied by TVA, although the December total monthly fuel cost is higher than last month’s, the amount remains some 18% lower than the three-year average December amount. TVA states that its total monthly fuel cost increase is largely due to slightly lower expectations for hydro generation for the month, which increased projections for purchased power expenses. The increased winter rates, which are an annual rate adjustment, result from projected increases in the amount of energy needed for heating, lighting and other wintertime applications.

The month of November was a transition month that billed at a slightly lower rate.  Last month, the average electric use of 1,330 kilowatts (kWh) cost $136.15. In December, the same electric use will increase to a total of $139.81 due to the increases in both the winter energy rate and the fuel cost amount. This is a $3.66 increase on the average electric bill of 1,330 kWh.

“Over the past year, TVA has seen the positive results of higher than expected hydro generation, and the negative results of slightly lower than projected electric sales,” says FPU CEO and General Manager Britt Dye. “Other factors such as forecast costs and expenses for purchased power, gas and coal generation also affect TVA’s overall winter rates and total monthly fuel costs.”

Winter season rates begin on December 1st and remain in place through March 31st.  The total monthly fuel cost will continue to change monthly.

“The seasonal rates and fuel costs are pass-through increases only,” Dye said.

For a complete listing of Fayetteville Public Utilities electric rates, click on the rates menu section at the left of this page. To help electric consumers with their energy costs, FPU offers a budget billing plan to average monthly electric and natural gas bills.