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PEC announces upcoming rate decrease
August 31, 2006
Electric bills for Plateau Electric Cooperative members will decrease after October 1, the Cooperative announced Monday.
According to PEC CEO John Seale, bills for meters read after October 1 will reflect the decrease.
“Under the direction of their newly-expanded Board of Directors, TVA will be decreasing wholesale power costs by 4.5 percent beginning in October, and the Plateau Electric Cooperative Board has agreed to pass the TVA decrease on to our consumers,” Seale said.
Seale also noted that TVA has taken an additional rate action effective October 1.
“There have been some newspaper articles recently dealing with TVA’s fuel cost adjustment,” he said. “The adjustment, while becoming TVA policy in October, is anticipated to be triggered for the first time this coming January 1, and will be adjusted on a quarterly basis thereafter.
TVA, just like everyone else, has experienced increased costs for fuel, coal and purchased power, and this fuel cost adjustment mechanism will allow them to react to actual market prices much more quickly than they have in the past,” Seale added. “It is expected that the fuel cost adjustment will move both upward and downward as the market dictates, and in a very similar manner to the fuel prices that we see as consumers.”
Seale said that the January 1 fuel cost adjustment will be itemized as a separate line-item on electric bills, allowing customers to track the adjustment from quarter to quarter.
news@ihoneida.com
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