New electric rates will be in effect following action by TVA and CEMC

New rates authorized by both Cumberland Electric Membership Corporation and TVA, combined with an increase in TVA’s quarterly Fuel Cost Adjustment (FCA), means the cost of energy will be higher starting April 1.

At its regular monthly meeting on Feb. 29, CEMC’s Board of Directors approved a 2.97 percent increase for all rate classes. The action came two weeks after the TVA Board approved a seven percent wholesale rate increase.

At CEMC, additional revenue is needed to cover the higher costs of doing business since the cooperative’s last rate increase in April 2005. At that time, CEMC’s rates rose by 2.99 percent.

TVA’s third quarter FCA , covering April, May and June energy bills, also takes effect April 1. The increase amounts to slightly more than one-half cent per kilowatt hour (kwh).

For the average residential CEMC household using 1,623 kwh per month, the new total amount due, taking all three higher rates into consideration, will be $147.21. Households using 1,000 kwh or less will not see any portion of CEMC’s rate increase. Those bills will only be affected by TVA’s new rate and the FCA.

“I hope people understand the importance of using the energy they buy as efficiently as possible which will help keep their costs down,” says Carl Wilson, CEMC general manager.

“Switching from incandescent light bulbs to longer-lasting compact fluorescent lights (CFLs) is a good place to start, but we also encourage people to request a free home energy survey from TVA which could point out numerous other ways to more efficiently light, heat and cool their home,” Wilson says.

To obtain a survey, log onto this website: www.energyright.com/savingenergy/evaluation.htm or call CEMC’s Member Services Dept. at (800) 987-2362. Either way, a survey will be mailed to you. Everyone who returns a completed survey will receive a free energy conservation kit containing CFLs, faucet aerators, outlet and light switch gaskets and other useful energy-saving items.