Click here to see the rates effective January 1, 2008.

Heat and drought resulted in TVA having to raise it fuel cost adjustment (FCA) for NGEMC customers to $.00280 per kilowatt hour. For an NGEMC customer who uses 1,500 kilowatt hours per month, the FCA is $4.20. The new FCA begins January 1 and continues through March 31.

The drought cut production of hydropower by nearly one half. In addition, higher temperatures resulted in more demands for electricity to power air conditioners.

The FCA was implemented in October 2006 because of rising fuel costs. This mechanism allows TVA to adjust the fuel rates as fuel and purchased power costs fluctuate.

It is important that you remember that the FCA can adjust upward or downward quarterly, based on the costs associated with fuel and generation for the upcoming quarter.

The FCA appears as a line item on all NGEMC bills. The FCA is strictly a pass-through charge, meaning NGEMC produces no additional revenue from the FCA.

To calculate the impact of the FCA on your bill, multiply the number of kilowatt hours used with the FCA amount determined each quarter.