Effective April 1, 2008, the Tennessee Valley Authority (TVA) will increase electric wholesale power rates to fund new power generation and energy efficiency initiatives to meet the growing demand for power in the Tennessee Valley.

As a result, the average NGEMC customer using 1,500 kilowatt- hours (kWh) each month will see an increase of 5.5 percent on the base rate of their bill. Combined with TVA’s increase in the Fuel Cost Adjustment for the second quarter of 2008, NGEMC customers using 1,500 kWh each month would see a total increase in their monthly NGEMC bill of $10.70, a 9 percent increase.

The new rates will affect meters read on or after April 1. The percent of rate increase varies depending on the customers’ electricity use.

Our region’s growth was a major reason TVA met three all-time winter records for electricity consumption in the Valley since Jan. 1. Last summer, TVA met 13 all-time summer records for power demand during August.

A rate increase is also needed to fund the 2008 TVA budget, which includes the addition of new power plants and completion of Unit 2 at Watts Bar Nuclear Plant.

While the rate hike may increase bills, electricity rates for NGEMC customers and others in the Tennessee Valley are still 20 percent below the national average, according to the U.S. Department of Energy’s Energy Information Administration’s latest data.

What can you do to reduce power costs? Suggestions from NGEMC include:

• Replacing incandescent lightbulbs with compact fluorescent lightbulbs—they use 75 percent less energy and last up to 10 times longer.
• Turning up your thermostat as high as is comfortable in summer and as low as is comfortable in winter and leave it alone.
• Tuning up your heating and cooling system annually to keep it running as efficiently as possible.
• Adding insulation to your attic, crawl space and any accessible exterior walls. For more energy-saving tips, visit www.ngemc.com.

Compared to other fuel sources, electricity rates have remained relatively stable. According to the Energy Information Administration, regular grade gasoline prices in the United States increased by 57 percent between November 2004 and December 2007. Since 1999, natural gas prices have risen 97 percent.