Just a week after Entergy requested a 10% hike in their “Fuel Adjustment” charge (on top of last summer’s hefty increase), TVA has announced their third straight quarterly “fuel adjustment” decrease.
TVA says the decrease will bring their prices down to the lowest level in over a year.
“With the reduction in July, we will roll back all of the fuel cost adjustment increase from last fall, which is good news for ratepayers,” TVA President and CEO Tom Kilgore said. “Fortunately for all of us, the price of coal and natural gas that are used as fuels in TVA power plants has declined in recent months. In addition, current economic conditions have resulted in lower power sales for TVA and that reduces our fuel and purchased power costs, as well.” source
Now, I’m sure that their is a simple explanation for the apparent discrepancy, and I would be very interested to hear Entergy’s take on all of this. But, at first blush, Entergy’s rate hike request just doesn’t pass the smell test.