Supply & Demand

TVA has made an adjustment to its costs and we have to pass those on to customers. They had limited generation capabilities due to extreme heat and at the same time there was an increase in demand.

The Fuel Cost Adjustment (FCA) is the mechanism TVA uses to help recover largely uncontrollable fuel and purchased power costs. A variety of factors affect these costs, including weather and global supply and demand issues. For billing periods beginning October 1, 2010, TVA's wholesale FCA will change from the current amount of 0.659 cents per kilowatt-hour to 1.127 cents per kilowatt-hour.

This means that our residential customers will see an increase of approximately $4.93 in October.