Beginning April 1, Tennessee Valley Authority will change its 19-year old rate structure to more accurately reflect TVA’s higher cost to generate power by passing that growing cost along to its 155 power distributors in seven states. Gone will be the flat rate per kilowatt-hour TVA has billed power distributors for years.
TVA says the cost to produce power fluctuates from hour to hour, day to day and month to month. During peak demand times consumers have at times taxed the electric system exceeding TVA’s capacity to meet the need. TVA has had to find others ways to provide the much needed energy, often turning to more expensive fuels like natural gas, or resorting to the costly option of purchasing power on the open market. All the while, customers have paid the same rate per kilowatt-hour regardless of the time of day or year.
That is about to change. The rate structure change mandated by TVA will more accurately reflect the cost of power during peak times, and is designed to help reduce peak power usage in the region with the hope it will reduce the need for new power plants. TVA will now charge their distributors different rates depending on months of the year consumers use the most electricity. Rates will be higher during winter and summer months: December through March and June through September.
It is also conceivable in the future TVA will begin billing distributors higher rates based on the time of day electricity is consumed at peak demand. Tennessee’s electric cooperatives are working hard to mitigate the impact of demand billing on a monthly basis, by offering energy efficiency tips and encouraging consumers to be ever-mindful to shift their energy-consuming chores to off-peak hours.
Aside from the growing energy demand, other pressures at work are added regulations mandated by the U.S. Environmental Protection Agency (EPA) adding another expensive hurdle. The EPA will soon begin regulating greenhouse gases such as carbon dioxide. To comply with these regulations, new power plants may have to be built to meet the growing demand, while a number of currently operating plants are retired because they do not meet new standards. For electric co-operatives, tighter emissions controls and the rising cost of building materials could have a multi-billion-dollar impact on the cost of doing business.
We started a giving campaign in November of last year to see how much money we could raise for Faces of Hope Children’s Therapy Center serving the Middle Tennessee area. Faces of Hope works with children affected with autism and other special needs providing much needed therapy and support as well as training for their families. As with many non-profits these days, this program has been in critical need of funds. We committed to donate $1 for each new “like” to our Facebook page through the end of year, and are pleased with the success. Therefore, we decided to extend the promotion through April 15, 2011. You can help us raise funds for Faces of Hope Children’s Therapy – get the word out – $1 for every new “like” our Facebook page receives and $30 for every new Advanced Propane customer who mentions our Faces of Hope Giving Campaign. How quickly can we raise $1,000? The challenge is on!
Accepting the check on behalf of Faces of Hope Children’s Therapy Center is volunteer Kathy Gross, therapist Jessica Williamson, and FOH Board Chairman Jimmy Overton with Advanced Propane Sales Manager, Kevin Etheridge.
Advanced Propane Inc.’s resolutions for the New Year are made and begin with how we plan to communicate with you, our customers, associates, friends and family. Our website just received a new makeover and we recently joined the Facebook social network with a customized business page. We are now more accessible than ever before and ready to engage!
For those of you not familiar with us… we are a full service propane company, locally owned, serving our community since 1992. We are proud of our deep Wilson County roots and strong ties to the Middle Tennessee community. Read More