(WCLU NEWS FILE PHOTO)
BY BRENNAN D. CRAIN, WCLU News
GLASGOW — Residents are feeling the heat of higher electric bills this month as the height of summer usage is reflected on them.
The Glasgow Electric Plant Board said bills take a slight turn during the summer and winter months due to extreme temperatures. The combined heat and humidity last month caused cooling units to work overtime, and electric bills appear to have ticked upward.
“That’s something that’s going on across the utility industry right now,” said Aaron Russell, marketing and communications director at the Glasgow EPB. “It’s something that happens just about the same with every peak demand season – the winter and in the summer.”
Customer bills go out a month behind, which means this month’s statements reflect July’s usage.
Most utilities offer a unit cost for their services and factor in what is called a “fuel cost adjustment.” The FCA is a measure of what it costs to get electricity to customers.
The Tennessee Valley Authority sells electricity at a wholesale rate to local utility companies like the Glasgow EPB. The cost of that electricity is then distributed to customers. The FCA each month shifts as the TVA adjusts for costs to supply it to local utilities.
“Generally, your average is around 2 to 2.5 cents – that’s per kilowatt hour,” Russell said. “Right now, we’re at a rate of 4.5 cents.”
The FCA nearly doubled this summer mainly due to the increased demand from across the TVA’s service area. Temperatures are often the hottest in June, July and August. July 2022 was determined to be the third-hottest July in the 128-year climate record, according to the National Oceanic and Atmospheric Administration.
But inflation seems to have taken its toll on the rate, too.
“I would figure seeing it increase as much across the board over the past year,” he said. “I would think that plays a part just because of the cost of transporting and creating that service to meet the usage demand.”