NES rates are set and regulated by the Tennessee Valley Authority (TVA). All NES residential customers pay the same electric rate regardless of social status, income or place of residence.
Current Seasonal Rate 10.518 cents per kilowatt hour (Summer)
A typical NES customer uses approximately 1,300 kilowatt hours of electricity each month.
TVA Fuel Cost Adjustment 0.345 cents per kWh
The TVA Fuel Cost Adjustment has decreased for August. Customers will see an average Fuel Cost Adjustment charge of $4.49 (based on a 1,300 kWh bill).
Degree days determine how much need there is to heat or cool your home by measuring how weather compares from month to month.
Customers with an additional meter for residential purposes, at the same location as their home, are eligible for the SRS rate.
NES Service Charge $11.83 per month
The service charge is a set amount on your bill each month and is necessary to cover the cost of providing service, such as meter installation, maintenance, meter reading, transformers, tree trimming, poles, payment processing, postage and customer service. The charge is the same for all residential customers.
Understanding TVA Seasonal Rates
TVA charges customers a higher rate in the summer (June- September) and winter (December-March) when it cost the most to produce power because of increased customer usage. Rates are lower during transitional months (April-May & October-November).
What does it mean for my bill?
Based on an average 1,300 kilowatt hour per month bill, customers will see an increase of about $3 during summer months and a decrease of about $3 during transitional months. However, customers typically use more electricity in the summer and winter and less during transitional months which will result in higher bills in the summer and winter due to the seasonal rate change. The degree of the impact will depend on the customer’s usage during those months.
Why does it cost TVA more to produce power in the summer and winter?
During mild weather, TVA can get by using its hydroelectric dams, coal units and nuclear units to meet the demand for electricity. These are the cheapest ways for TVA to generate power. On a hot day, TVA must add its natural gas-fired power plants and purchase additional power from other generators to meet the demand. These are the most expensive ways to produce power.
What are time-of-use rates?
With time-of-use rates, customers pay a different rate during the day depending on how much it costs TVA to generate power. For instance, rates would be lower after 8 p.m. and higher between 10 a.m. and 7 p.m. when customers use the most electricity. At this time, NES is unable to bill customers at time-of-use rates because the metering infrastructure need to record the hourly data is not in place.