TVA Fuel Cost Adjustment Increases 33%

The Tennessee Valley Authority announced a 33% increase in their Fuel Cost Adjustment (FCA) rate beginning April 1. This increase is due to TVA’s increased cost for fuel and purchased power used to generate electricity. The fuel cost represents approximately 20% of the total electric bill.

The VEC Customer Charge did not change. TVA’s Fuel Cost Adjustment line is where the increase will show on your bills beginning April 10. The overall increase in the residential electric rate is 5% due to the fuel cost increase.

One way VEC members can be proactive is to follow easy energy efficiency techniques:

  • Turn off lights, T.V., computers, and game consoles when they are not in use.
  • Don’t leave small appliances and chargers plugged in – remember, if it has a light, it uses electricity.
  • Ensure your heat pump, central air, or window air conditioner is clean and in good working order. Inspect, clean, or replace all filters as needed.
  • Run room air conditioners only whe
    n you need them.
  • Set your heat pump/central air thermostat to 78 in the summer and 67 in the winter.
  • Dry only complete loads, so you don’t have to pay to reheat the dryer.
  • Wash clothing as much as you can in cold water.
  • Install efficient LED lighting
  • Always close your fireplace damper when not in use.


Billing examples: