HUNTSVILLE – Due to sharp increases in costs for natural gas and the subsequent increase in the monthly fuel cost adjustment, Huntsville Utilities customers can expect to see increases in their power bills as the summer progresses. The monthly fuel cost adjustment is passed down to local power companies such as Huntsville Utilities by the Tennessee Valley Authority.

Huntsville Utilities is a not-for-profit, public utility owned by the city of Huntsville. The monthly fuel cost is a component of the utility’s per kilowatt-hour charge for residential and commercial electricity and the price TVA pays for natural gas, coal, and other power sources needed to generate electricity across the Tennessee Valley.

TVA provides a diverse mix of energy options including solar sites, wind assets, nuclear plants and a network of hydroelectric dams. However, it is the price of natural gas that is driving up costs, TVA said in a news release.

The monthly fuel cost varies from month to month, TVA said. While the variance is usually a few tenths of a cent, the cost has been steadily increasing from its typical rate of between 1.5 to 2.5 cents per kWh to 2.715 cents in June to 3.829 cents in July and, for August, TVA is forecasting a fuel cost adjustment of 4.612 cents.

Due to this sharp rise in fuel costs, the residential rate per kWh rate for June increased to 10 cents, then to approximately 11 cents in July, and will increase to roughly 12 cents in August.

While a change of three cents over three months may not sound like much, it adds up quickly for customers who use large amounts of electricity.

Helping customers control their energy usage and costs is one of Huntsville Utilities most pressing goals, offering on their website and on social media, a plethora of information about how to reduce electric consumption and lower power bills.