TVA Seasonal Rates

What are seasonal rates?

Customers pay a different rate depending on the season of the year:

  • Spring – April, May
  • Summer – June, July, August, September
  • Fall – October, November
  • Winter – December, January, February, March

TVA charges more for electricity when it costs them the most to produce it – during the summer and winter - when customers use the most energy. Rates for spring and fall (transitional months) are lower. 

 

Why does it cost TVA more to produce power in the summer and winter?

During a nice fall day, 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 use 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 – as well as during the season – 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 and other TVA distributors are unable to bill customers at time-of-use rates because new AMI meters are required to accurately record the hourly data.