CHANGES IN ELECTRICITY RATE STRUCTURE COMING IN JANUARY
TVA Moves Forward With Plans for Major Rate Structure Change:
Will Result in Cost Increase to DREMC Members
Despite concerns expressed by many of its power distributors, including Duck
River Electric, the Tennessee Valley Authority (TVA) appears determined to move
forward with plans this fall to implement a major rate structure change that will ultimately
affect how wholesale and retail electric bills are calculated as well as potentially impact
the total cost of energy. The change could come as early as October of this year.
While TVA asserts the rate change is “revenue neutral” to TVA as a whole, it will
have varying impacts on different TVA power distributors. Unfortunately, the impact on
DREMC and its members will be to increase the rates TVA charges to DREMC and
ultimately to its members for power consumed. DREMC is still analyzing the degree of
the impact and methods to mitigate it, but it now clear that TVA’s charges to DREMC
will be going up.
For approximately two decades TVA has billed its power distributors through a
rate methodology known as “end-use wholesale rates,” which in lay terms means all
municipal and cooperative customers of TVA power are billed each month for the
amount of energy sold or used and metered by that individual power distributor to that
specific class of customers. This particular method of billing does not take into account
the peak demand for power during a given period of time by all consumers, nor does it
matter what time of day, day of the week or season of year the energy is used.
TVA began discussions with power distributors through the Tennessee Valley
Public Power Association’s (TVPPA) Rates and Contracts Committee more than a year
ago to arrive at a new “demand and energy” rate methodology that will in the future
account and bill for hourly use of power at differing rates as well as introduce rate
incentives for peak load demand reduction through time-of-use rate calculations, direct
load control devices, etc.
Will Result in Cost Increase to DREMC Members
Despite concerns expressed by many of its power distributors, including Duck
River Electric, the Tennessee Valley Authority (TVA) appears determined to move
forward with plans this fall to implement a major rate structure change that will ultimately
affect how wholesale and retail electric bills are calculated as well as potentially impact
the total cost of energy. The change could come as early as October of this year.
While TVA asserts the rate change is “revenue neutral” to TVA as a whole, it will
have varying impacts on different TVA power distributors. Unfortunately, the impact on
DREMC and its members will be to increase the rates TVA charges to DREMC and
ultimately to its members for power consumed. DREMC is still analyzing the degree of
the impact and methods to mitigate it, but it now clear that TVA’s charges to DREMC
will be going up.
For approximately two decades TVA has billed its power distributors through a
rate methodology known as “end-use wholesale rates,” which in lay terms means all
municipal and cooperative customers of TVA power are billed each month for the
amount of energy sold or used and metered by that individual power distributor to that
specific class of customers. This particular method of billing does not take into account
the peak demand for power during a given period of time by all consumers, nor does it
matter what time of day, day of the week or season of year the energy is used.
TVA began discussions with power distributors through the Tennessee Valley
Public Power Association’s (TVPPA) Rates and Contracts Committee more than a year
ago to arrive at a new “demand and energy” rate methodology that will in the future
account and bill for hourly use of power at differing rates as well as introduce rate
incentives for peak load demand reduction through time-of-use rate calculations, direct
load control devices, etc.
posted by Allen Barrett | 8:11 AM
28 Comments:
My electric bill is going up, my medicare insurance went up, my Social Security check went down. How will I pay bills. Thank God we got snow not ice to cause the electric power go off.
My heat is electric.
10:19
Good post. Yes, thank God for all our blessings. It's nice to make a positive statement in the face of negativity. Thank God for our measure of blessings.
I just learned that my bill from Pulaski Electric doubled from last month. When I enquired as to why I was told because it has been colder than usual. That may make sense if I used my central unit for heat but I use propane. Is this extreme bill what is known as not letting a good crisis go to waste. Does anyone know what independent agency keeps tabs on this kind of abuse?
Wait until we get our electric bill after charging our electric cars.
4:05 That will make this 4 dollar gas look cheap.
Dear 4:04 p.m. Please check the meter reading on your bill versus what your meter actually reads. I had a $400+ bill one month after I had moved out of that home. The customer service lady told me it was correct, but I demanded they recheck my meter (which I had already done myself)and they discovered their error. The meter readers are only human like you and me and they do make mistakes from time to time. So I would suggest you check the meter yourself because that doesn't sound right if your bill doubled and your heat is not on your electric bill. Hope that helps!
Do we still have some meter readers? I've heard some people say no one comes around and reads their meter anymore.
Has anyone received their electric bill from December yet?
Yes. My electric bill was like an additional house payment. Would someone be willing to blame that on Mrs. Vanzant and/or select members of the commission? I wonder.
5:16 Blame it on who ever you want, but want cut the electric bill in half.
I'm surprise someone hasn't blamed it on barrett.
1:03
I'm surprised that barrett hasn't blamed it on Mrs. Vanzant and certain commissioners who do not meet with HIS approval.
6:40 What would you do first thing of a morning if this blog closed?
Now go ahead and have the last word.
Rates went up and this cold weather along with Christmas cooking and lights is why the electric bill went up.
8:15
What I would do first thing in the morning happens to be none of your business. But I suppose I would rejoice that this thing finally has ended and be on my merry way. What about you? With no pot to be stirring, you might need another hobby.
This needs to end, and I would be happy if it did.
Now, will you have another last word?
8:26 I noticed no matter what anyone post, you come back with something.
So like 8:15 I think you need the last word.
Like I read on here a long time ago, your computer must ding every time some one post.
1:41
I simply ask that the hate-mongering, name-calling, and the like cease.
4:57 if you were really wanted the hate-mongering, name-calling,to stop you would stuff a sock in your mouth and wear boxing gloves on your hands.
9:32
I will continue to make the case that this hate-mongering stop as long as I am given breath and mind to do so. It's sad that you guys remain so unhappy.
Ok, your turn.
7:18
from all your post you sound unhappy.
Before you start yelling how happy you are, just think..
You are unhappy about all the name calling on this blog, you are unhappy when you hear WAB's name or anything he post.
If the emails address came out of all the people who post on this blog, who do you think posted the most times, not counting the threads Barrett starts.
12:23
Wrong. I am a very happy person. I would be even happier if all this strife would end. But that's not likely to happen, is it?
If all the email addresses became public, I'm afraid there would be some serious trouble. Have you not heard the old expression that it's sometimes best to let sleeping dogs lie?
1:11 Why can't you let sleeping dogs die then?
At least you said you would be happier if all this strife would end.
Was that not of the things 12:23 said made you sad.
3:30
It seems that you don't easily grasp things. Either that, or you just want to be argumentative.
What I SAID is that I am a happy person and that I would be even happier if all this name-calling and troublemaking would stop. But it seems you are happiest when there is strife. I just don't understand that. Do you?
Argumentative is the person that post first every morning. Is she/he not against every thing said on the blog?
Argumentative? Wrong! I simply keep asking that the name calling and attacks stop.
I have to go to work early mornings, so that's about the best time I can post. Perhaps some of the troubled need to consider getting jobs or hobbies?
4:14, Done my time and allowed to retire. Hopefully you will be able to retire someday.
Have a good hobby also.
Forgiveness is the key that unlocks the door of resentment and the handcuffs of hate. It is a power that breaks the chains of bitterness and the shackles of selfishness.
_______William Arthur Ward
"I rarely seem to know what's best"
Enabler (Wednesday, February 02, 2011 8:19:00 PM)
11:41
There is no enabler if you refer to me. Why don't you stop perpetuating a lie?
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