Reaction to TVA 1Q 2009 Fuel Cost Adjustment

Here is a statement from CEMC General Manager Carl Wilson regarding the First Quarter FY 2009 Fuel Cost Adjustment announced today by TVA:

“TVA has done a good job over the past few weeks communicating with CEMC and other distributors about the forces behind this latest Fuel Cost Adjustment. Coal prices are up, natural gas prices are up, and the availability of hydro generation has been drastically reduced because of the ongoing drought. All of these factors have forced TVA to buy more power from the market, which is substantially more expensive than TVA-produced power.

“Regrettably, the people who must pay for all of this are the people who rely on TVA to light, cool and heat their homes and businesses, and that’s all of us. CEMC has no alternative but to pass these higher costs along to its members beginning Oct. 1.

“This situation is not unique to the TVA service area. The price of electricity is rising all across the country. Even with the higher rates, we expect TVA electricity to continue to be among the lowest-priced in the United States.

“What has not changed is our commitment to provide our members with reliable service at the lowest possible cost. We will continue to offer assistance to our members looking for solutions to their high energy bills.” 

(CEMC currently has approximately 89,000 members in Montgomery, Cheatham, Stewart, Robertson and Sumner counties.)