Mountain Electric Cooperative (MEC) announces another rate reduction. Joe Thacker, MEC General Manager, said effective January 1, 2010, electric rates are reducing another 1.7 percent in January. This marks the seventh consecutive rate decrease in the past thirteen months. The net impact is a 20 percent reduction in rates compared to December, 2009. The average monthly residential bill will be $23.76 less than last January.
The rate decrease is a result of a reduction in TVA’s wholesale Fuel Cost Adjustment (FCA). This is the mechanism TVA uses to help recover fluctuating fuel and purchased power costs. The FCA ensures TVA recovers costs as they occur, helping TVA better match its revenues to expenses. The primary reasons for the FCA decline are lower than expected sales (which lower fuel cost since TVA generates with less expensive resources), lower fuel prices in general, and higher hydro generation.
“With the current economic conditions and the turmoil from recent snow and ice storms, this is a little good news that we’re pleased to pass on to our customers.” Thacker said.
The year-to-year comparison for a MEC residential electric bill for 1,000 kilowatt-hours is as follows:
January 2009 January 2010
$104.55 $87.27

For Complete details, please pick up this weeks edition of The Tomahawk, available at local newsstands today!