Pennyrile Electric members will experience minimal changes on their electric bills despite the Tennessee Valley Authority’s (TVA) eight percent increase to wholesale rates beginning October 1.

The TVA’s 2009-10 budget included an expected base rate increase of eight percent due to decreased sales revenue as well as other operating expenses. However, since fuel costs for the TVA have decreased significantly, the Fuel Cost Adjustment (FCA) for October will decrease by 11 percent.

Pennyrile Electric President / CEO, Eston Glover, Jr., explained TVA’s fuel cost which is passed on to Pennyrile Electric customers through the FCA, on their monthly bills, will continue to fluctuate, but will do so monthly rather than quarterly. Instituted in 2006, the fuel cost adjustment allows TVA to recover volatile fuel and purchased power costs affected by weather, supply, and demand, according to Mr. Glover.

Pennyrile Electric customers will also see an increase to the monthly customer charge in the amount of $2.61. The increase will assist Pennyrile with the rising cost of maintenance and service reliability. October’s FCA rate will offset both increases, resulting in little change to the average bill.