TENNESSEE, USA — The Tennessee Valley Authority said that consumers should expect lower power bills this fall due to milder temperatures and lower electric demand.
"This summer has been a perfect storm of hot weather, record‐high energy demand, and rising fuel costs," said Doug Perry, TVA's senior vice president, Commercial Energy Solutions. "We've been using every tool in our toolbox to keep your power bill as low as possible."
According to TVA, electric load hit a June record of 31,617 megawatts, natural gas prices were 141% higher this June versus last year, and July was Nashville's second‐hottest on record.
Perry explained that temperature is the biggest driver for power bills, not the cost of power. TVA has kept rates flat for the past 10 years and has among the lowest electricity prices in the country, according to the most recent data from the U.S. Energy Information Administration.
In terms of fuel, Perry said TVA is focused on protecting customers' wallets by using hedging strategies to lock in prices through longer‐term contracts and by choosing the least‐cost generation available from among TVA's diverse generation resources.
This year, TVA said that over half of the energy it generates is carbon‐free and not affected by fuel prices. TVA said that its long-term vision is to achieve a 70% reduction in carbon emissions by 2030 and 80% by 2035, without raising costs or impacting reliability, and achieve net-zero emissions by 2050. Decarbonization can help stabilize the risk of higher power bills due to fuel price volatility.
To help achieve carbon reductions, recently, TVA said it made a request for up to 5,000 megawatts of carbon‐free energy and plans to add 10,000 megawatts of solar by 2035 – enough solar electricity to power 1.6 million single‐family homes.
Nationwide, utility customers are experiencing higher bills than in the Tennessee Valley, as TVA's residential power rates are lower than 80% of other utilities, according to TVA's article.
"We recognize the effect any cost increase has on families right now, and I can tell you that TVA is highly focused on doing everything possible to support communities by keeping power bills as low as possible," said Perry.
TVA has some tips to help reduce energy consumption:
- Turn your thermostat up just one or two degrees and use fans to circulate air when people are in a room. Each degree can save 3% on your power bill.
- Close window coverings on the sunny side of your home or office.
- Avoid using ovens, dishwashers, clothes dryers, and other appliances that generate heat in your home until later in the evening or early in the morning.
Click here for more no‐cost or low‐cost energy‐saving tips or to schedule a free in‐person or virtual home energy evaluation.
Homeowners can also check their eligibility for financing for home energy upgrades here.
Local assistance programs also offer relief, such as the Low Income Home Energy Assistance Program. Homeowners and renters can also check with their local power company for additional assistance programs.