TVA’s fuel costs are rising, and that is leading to an increase in the fuel cost adjustment that is included in your electric bill. At UCEMC, we want to keep our members informed about what is changing, why it is changing, and what it may mean for your household.

UCEMC is a distribution cooperative that purchases electricity from TVA on behalf of our members. UCEMC is a not-for-profit and does not retain any portion of TVA’s fuel cost adjustment. 100% of this adjustment is passed directly through to TVA.

What Is the Fuel Cost Adjustment
The fuel cost adjustment reflects TVA’s cost to generate electricity. TVA uses a mix of resources to produce power for the region, including natural gas, coal, nuclear, and hydro. When TVA’s generation costs rise or fall, the fuel cost adjustment can change as well.

This is not a base rate increase. It is a pass-through cost tied directly to TVA’s power generation expenses.

The fuel cost adjustment is variable and can change from month to month based on TVA’s actual cost to generate electricity. For the month of March, TVA’s fuel cost will increase. This increase could continue for several months, or it could go back down sooner depending on TVA’s actual generation costs.

Why Fuel Costs Are Increasing
TVA’s fuel costs rose for several reasons, including:

• Higher electricity demand across the region
• Changes in fuel and commodity market pricing
• Reduced hydro availability
• System and operational needs required to meet demand reliably

Because TVA must ensure reliable power for the entire region, generation costs can shift depending on these factors.

What Members May See
For a typical home using 1,000 kilowatt hours, the March fuel cost adjustment is expected to equal approximately a $15.91 increase for the month. Because every home uses a different amount of electricity, the exact impact will vary.

“We’re advising our members to conserve power to keep their costs down,” says Jennifer Brogdon, General Manager and CEO of Upper Cumberland EMC. “You pay for only what you use, and members who use less will see the savings on their bill.”

Prepay and traditional monthly billing members are charged the same electric rates, including the same base rate and fuel cost adjustment.

How to Monitor and Manage Your Usage
Even when power costs increase, managing how much electricity you use can help reduce the overall impact on your bill.

You can view your daily usage through the UCEMC Member Portal at ucemc.com or the UCEMC Mobile App.

Tracking daily usage helps you better understand patterns and identify opportunities to reduce consumption over time.

We Are Here to Help
We understand that changes in power costs can raise questions. UCEMC is committed to keeping our members informed and helping you understand your bill.

If you have questions, our Member Services team is available to review your account, walk through your usage, and share helpful tools and resources.