NEW TAZEWELL, Tenn. — On Wednesday, the Powell Valley Electric Cooperative warned customers that they may receive higher energy bills soon. They said the higher prices were a result of a Fuel Cost Adjustment from the Tennessee Valley Authority.
"We have no control over the FCA," PVEC said on social media. "All money collected through the FCA goes to TVA to purchase natural gas and other fuels."
PVEC serves a region ranging from New Tazewell to Pennington Gap, over the Kentucky border.
Many companies across East Tennessee and beyond buy electricity from the TVA, generated at plants that use different fuel sources like natural gas or uranium. These companies then take the power and distribute it to customers across their region. Effectively, the price of electricity sold to power companies is going up, so utility bills could rise as well.
The TVA said the changing cost of fuel is not only because of rising inflation rates. They said the price of getting natural gas has also gone up due to economic growth and a short supply.
The fuel cost adjustment is at its highest amount since the TVA started it in 2011, according to officials. Natural gas prices are also at a 14-year high.
The adjustment could cost around $18 per month for the average household, the TVA said. Households that can't afford their power bills can reach out to the TVA to participate in their programs to help low-income households. Several East Tennessee utility companies also usually have assistance programs, such as the Low-Income Home Energy Assistance Program.