City electric rates among lowest

Friday, January 12, 2007

By JOHN PECK

Times Staff Writer john.peck@htimes.com

Huntsville is fourth best of 154 TVA distributors

It may not be much consolation as you pay those December heating bills, but a new study shows Huntsville Utilities has among the lowest electric rates in the seven states served by the Tennessee Valley Authority.

The recent report by TVA ranks Huntsville's residential electrical rates fourth lowest among 154 distributors of TVA power.

The study shows Huntsville's 7 cents per kilowatt hour rate for residential electricity 12 percent below the average throughout TVA-served areas. That rate results in a residential monthly bill of $83.54 for Huntsville customers for 1,200 kilowatt hours, compared with a TVA systemwide bill averaging $93.53.

The TVA ranking looked only at residential rates based on 1,200 kilowatt hours and included monthly fixed customer charges ($5.77 in Huntsville).

Huntsville Utilities spokesman Bill Yell said TVA sent each power distributor information on how that system ranked. He referred inquiries about other rankings to Frank Rapley, a TVA spokesman in Nashville. Rapley said he could not release other distributors' rate rankings without their permission.

A Times check of rates from several nearby TVA power distributors showed only Decatur with a lower residential electrical rate than Huntsville Utilities. Decatur customers paid $80.86 for 1,200 kilowatts; Athens, $88.26; Guntersville, $90.71 and Scottsboro, $95.54.

Yell said that although the rankings fluctuate yearly, Huntsville Utilities historically has had among the lowest rates among TVA power distributors.

TVA municipal distributors and electrical co-operatives pay a wholesale rate for power from the TVA grid and can tack on a local charge to cover equipment, labor and administrative costs.

A 4 percent drop in TVA's wholesale rate in October followed back-to-back TVA rate increases of 7.5 percent and 9.9 percent earlier in that year.

Over the past five years, the average Huntsville Utilities residential customer used 1,460 kilowatts a month. Based on this amount, a customer's electric bill would be $95.10 before adding the $5.77 customer charge. For the same use, the average national electric bill would be $159.72, according to Huntsville Utilities.



City electric rates among lowest Friday, January 12, 2007 By JOHN PECK Times Staff Writer john.peck@htimes.com Huntsville is fourth best of 154 TVA distributors It may not be much consolation as you pay those December heating bills, but a new study shows Huntsville Utilities has among the lowest electric rates in the seven states served by the Tennessee Valley Authority. The recent report by TVA ranks Huntsville's residential electrical rates fourth lowest among 154 distributors of TVA power. The study shows Huntsville's 7 cents per kilowatt hour rate for residential electricity 12 percent below the average throughout TVA-served areas. That rate results in a residential monthly bill of $83.54 for Huntsville customers for 1,200 kilowatt hours, compared with a TVA systemwide bill averaging $93.53. The TVA ranking looked only at residential rates based on 1,200 kilowatt hours and included monthly fixed customer charges ($5.77 in Huntsville). Huntsville Utilities spokesman Bill Yell said TVA sent each power distributor information on how that system ranked. He referred inquiries about other rankings to Frank Rapley, a TVA spokesman in Nashville. Rapley said he could not release other distributors' rate rankings without their permission. A Times check of rates from several nearby TVA power distributors showed only Decatur with a lower residential electrical rate than Huntsville Utilities. Decatur customers paid $80.86 for 1,200 kilowatts; Athens, $88.26; Guntersville, $90.71 and Scottsboro, $95.54. Yell said that although the rankings fluctuate yearly, Huntsville Utilities historically has had among the lowest rates among TVA power distributors. TVA municipal distributors and electrical co-operatives pay a wholesale rate for power from the TVA grid and can tack on a local charge to cover equipment, labor and administrative costs. A 4 percent drop in TVA's wholesale rate in October followed back-to-back TVA rate increases of 7.5 percent and 9.9 percent earlier in that year. Over the past five years, the average Huntsville Utilities residential customer used 1,460 kilowatts a month. Based on this amount, a customer's electric bill would be $95.10 before adding the $5.77 customer charge. For the same use, the average national electric bill would be $159.72, according to Huntsville Utilities. © 2007 The Huntsville Times © 2007 al.com All Rights Reserved.