MLGW expects sizeable increase in power bills this summer
MLGW recommends that customers set their thermostats to 78 degrees or higher to minimize expenses. (The Daily Memphian file)
Memphis Light, Gas and Water Division customers will see a 20% to 40% rate increase between July and September, which could raise bills between $30 and $60 per month.
For July, the Tennessee Valley Authority — the electricity supplier for MLGW and 152 other power companies across a seven-state service area — expects an average regionwide increase of $18 per month or a 10% overall increase in customers’ bills.
Beginning July 1, the total monthly fuel cost will be 3.829 cents per kilowatt-hour for residential and business customers served by the Tennessee Valley Authority.
TVA’s Fuel Cost Adjustment adjusts as fuel prices fluctuate, and July’s FCA is the highest since it started in 2011.
The July fuel rate for TVA has increased 123% compared to the three-year average, which was low because of COVID-19 impacts, but TVA said the increase is mostly due to higher commodity prices.
MLGW said the rising costs are the result of high natural gas and coal prices coupled with an increase in electricity demand facing TVA and utility industries across the globe.
“Recently, there has been persistent upward and volatile movement in worldwide natural gas markets, and the monthly fuel cost will likely remain elevated for upcoming months,” TVA said.
The U.S. Energy Information Administration expects oil, natural gas, coal and electricity prices to remain historically high through 2023.
Air conditioning accounts for the bulk of summer costs, so MLGW recommends customers set their thermostats to 78 degrees or higher to minimize expenses. Each degree below this temperature increases cooling costs by 6%.
Other tips include using fans to move the air, shading windows and using a programmable thermostat.
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MLGW TVAKeely Brewer
Keely Brewer is a Report for America corps member covering environmental impacts on communities of color in Memphis. She is working in partnership with the Ag & Water Desk, a sustainable reporting network aimed at telling water and agriculture stories across the Mississippi River Basin.
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