Jun 18 - McClatchy-Tribune Regional News - Catherine Godbey The Decatur Daily, Ala.



Summer doesn't begin until Monday, but Mother Nature isn't waiting.

Summer-like temperatures arrived in the Tennessee Valley last Monday, causing residents to turn to their air conditioners for relief. But that relief comes at a price, which is increasing.

The Tennessee Valley Authority announced this week a hike in its fuel cost adjustment. For the fifth consecutive month, residents will see their electric rates rise.

The latest increase, to take effect July 1, will up monthly utility bills by 3 percent, which averages between $1.50 and $4.00 per month, depending on customer use. Since the string of increases began, the average customer has seen his utility bill steadily rise by a range of $10 to $23.50.

 Summer temperatures, increased demand and depleted credits combined to trigger the rate hike, said TVA spokesman Scott Brooks.

"June was the last month affected by the credits built up in 2009 from lower-than-anticipated fuel costs," Brooks said. "And June, July and August are our high peak months when we buy more fuel off the market. Natural gas prices are also more expensive right now."

TVA officials do not forecast a reprieve from the increasing monthly adjusted rates. As long as the temperatures heat up, so will the electric rates.

And meteorologists do not foresee a cooling off of the summer temperatures that assaulted North Alabama during the past week. Since June 10, the high temperature in the Decatur area has topped 90, reaching the mid 90s Sunday and Monday with a heat index of 106.

"Normally our highs are in the mid to upper 80s. We are running about five or more degrees above normal," said National Weather Service Meteorologist Sandy LaCorte.

The abnormally high temperatures are reflected in TVA's peak demand.

"We have seen an increase in peak demand to 27,000 and 28,000 megawatts," Brooks said. "As long as we hang around the 90 degree range, we will see that demand stay high. To meet the demand, we have to generate more power. That costs more money, and that is reflected in the fuel cost adjustment."

According to LaCorte, the temperatures will remain in the 90s through the weekend.

"Starting Friday and through to Monday, we will see temperatures in the mid 90s and heat index values right around 100," LaCorte said.

No records yet

Although peak demand has increased, TVA has not set any records for peak demand -- yet.

"Our record peak demand was 33,482 megawatts in August 2007, when the average temperature was 102," Brooks said. "We're not supposed to be anywhere near that temperature. At least not this weekend."

As the summer continues, TVA officials expect the fuel cost adjustment to continue to rise. Any changes in the wholesale electric rates impact all of TVA's 155 power distributors, including Decatur Utilities, Hartselle Utilities, Athens Utilities and Joe Wheeler Electric Membership Corp.

Local utility companies pass on any increase or decrease of the fuel cost adjustment directly on to the customers.

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