Energy Rates Fall with the Leaves

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Knoxville (WVLT) - The cool air today may have you thinking about the cold winter, months ahead and how you're going to pay for those heating bills.

In July, the TVA Board approved the 2007 fiscal year budget.

In that budget, which begins on October first, there is a 3 and a half to 5 percent reduction in power rates to their wholesale distributors, which means you'll be seeing a lower dollar amount on your bill.

"KUB will pass along 100% of that rate reduction to our customers effective Oct. 1st," says Jennifer Fern, KUB spokesperson.

That means every KUB customer who uses electricity will see a 4 and a half percent reduction in their bills.

Here's an example...for an average household that uses one thousand kilo watt hours a month will see two dollars and seventy nine cents in savings.

"Everybody always likes to see their bills go down so, I think everybody will enjoy a little bit of, paying a little less for a while," Fern says.

But the amount you're saving depends on how much power you use in your home.

"Each individual has to look at how thier using power and look for ways to conserve and use energy wisely because that really impacts your bill," says Gil Francis, TVA spokesperson.

In the past, TVA has had to increase rates due to the rising cost of natural gas, coal and fuel, now they can distribute power for less.

"We were able to find areas to reduce our costs in terms of our operations and also the price of fuel did come down slightly," says Francis.

And to help with the ups and downs of fuel costs, KUB customers will also be impacted by fuel rate adjustment adopted by TVA that automatically adjusts your fuel bill.

"If those costs stay flat there's no impact if they go down consumers get the benefit of that, if they go up, of course that's increased cost of providing power," Francis says.

So when you get your October bill in the mail, expect it to be a little lower.

"Folks are gonna see a reduction and any time they see reductions of any type of costs, that's a good thing," Francis adds.

The Clinton Utilities Board says they will reduce rates as well on October 1st and customers who use 1200 kilowatt hours a month will save about $2 dollars on electric.

We did hear back from a few electric companies across East Tennessee who said they will also reduce rates on Sunday, so contact your provider for more details.