lawrenceburgnow.com
lawrenceburgnow.com
Thursday, August 21, 2008

Power Officials Announce Rate Increase
 Press release issued by Lawrenceburg Utility System
  The price of the electricity that Lawrenceburg Utility Systems buys from TVA is increasing because of rapid increases in fuel prices around the world. Skyrocketing prices for fuels TVA uses to make electricity, such as coal, natural gas and power purchased from other energy suppliers, will cause wholesale electricity prices to increase about 20 percent effective
Oct. 1.
   Residential customers of Lawrenceburg Utility Systems may see an increase of about $12 to $15 on their average power bills, depending on their individual energy use.
The bulk of the increase is the direct result of rising fuel prices, which are recovered quarterly through TVA’s Fuel Cost Adjustment (FCA) mechanism. The FCA is based on the direct cost of fuel used in TVA’s generating plants, and the cost of purchased power that TVA uses to supplement its power generation. About 56% of TVA’s power supply comes from fossil fuels used to make electricity – coal, oil and natural gas. A variety of factors, which TVA cannot control, affect fuel and purchased power costs, including the weather and changes in market prices for various fuels. Many utilities, including most of those neighboring TVA’s service area, use similar mechanisms to adjust their rates and are faced with similar rate increases.
In addition, continuing drought conditions mean that TVA has been able to generate only about half as much inexpensive hydropower this year as it would generate in an average year. When TVA cannot generate that hydropower, it must buy replacement power at market prices.
The remainder of the TVA rate increase will cover additional fuel-related costs, such as increased coal inventory costs, and the expansion of TVA’s energy efficiency and demand reduction program.
   “When the prices of these fuels increase, TVA’s costs increase. As a distributor of TVA power, when higher prices force TVA to increase its rates, we must pass those costs along to our customers, “said Vic Pusser
   “The 159 distributors of TVA power worked with TVA two years ago to develop the FCA mechanism to help recover rising fuel prices on a quarterly basis,” said Vic Pusser LUS General Manager. “We believe the FCA is an important tool to help recover costs in a timely manner in order to maintain TVA’s financial health.”
   To start saving energy and money on their power bills, LUS customers may take a few simple steps, which include completing an online home energy audit at energyright.com. LUS customers who complete the audit will receive a free energy efficiency kit to help them get started.

Recommended energy-saving tips:
• Turn up your cooling system’s thermostat to 78°F. Don’t pay to keep your furniture cool — raise it even more when no one is home. Use electric fans to maintain comfort with a higher thermostat setting.
• Turn off lights, appliances and other home electronics with a power bar when not in use.
• Use the “sleep mode” on computers.
• Use the microwave instead of a stove burner or oven for cooking.
• Operate dishwashers and clothes washers only with full loads and after 8 p.m. air dry dishes in the dishwasher.
• Replace incandescent bulbs with compact fluorescent bulbs, that use 75 percent less energy and last 10 times longer.

 

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