Electric rates effective June 1

Fayetteville Public Utilities (FPU) consumers will see an overall increase of 4.78 percent in their June electric bills due. The increase reflects an increase in the Tennessee Valley Authority’s (TVA) seasonal rate change and a decrease in the total monthly fuel cost. 

For consumers who have an average electric bill of 1,330 kilowatt hours, the monthly bill will increase by $6.83. Of this amount, the increase in the seasonal energy charge is $7.40; the decrease for the fuel cost is $0.57. Customers using the average 1,330 kilowatt hours will see electric bills increase from $142.78 in May to $149.71 in June. 

According to TVA, the fuel cost for June is approximately 7 percent lower than the three-year average June amount. June’s decreased fuel cost is mostly due to lower than forecasted generation cost. TVA further states that higher hydro generation during the month of April also contributed to the decrease in the total monthly fuel cost for June.

“Warmer weather is upon us, so electric bills will vary depending on the amount of energy you use for cooling during the warmer temperatures,” says Fayetteville Public Utilities’ CEO and General Manager Britt Dye.

TVA implemented the seasonal rate structure in April 2011 which directly reflects the higher costs of producing electricity during those months when there is a greater demand for energy from consumers. The seasonal rate structure allows TVA to bill higher costs of power production to consumers as the energy is used. 

Summer seasonal rates begin on June 1stand remain in place through September 30th. TVA’s total monthly fuel cost will continue to change monthly. Visit FPU’s website at www.fpu-tn.comfor a complete listing of electric rates effective June 1.