The TVA Fuel Cost Adjustment (FCA) will decrease for the third straight quarter for billing periods beginning July 1 through August.  The approximately 4% drop, beginning July 1, will mean an average savings for HES customers of about $2 to $5 on their monthly bill.  The decrease is the result of lower fuel and purchased power costs.  TVA began using the Fuel Cost Adjustment in October 2006 after experiencing a spike in fuel costs caused by Hurricanes Katrina and Rita the previous year.  About 60% of TVA’s power supply comes from fossil fuels used to make electricity – coal, oil and natural gas.

FAQ about the TVA FCA (pdf)