EPB Considering Cost Adjustment To Cover Extreme Weather Fluctuations

Monday, August 25, 2014 - by Gail Perry

The EPB Board of Directors has been asked to consider an adjustment to the monthly customer charge on electric bills. The current base customer charge is $7 per month.

Extreme fluctuations in the weather have an effect on the cost of electric power because TVA bills EPB on the peak demand of each month.

If the temperature is high at the beginning of the month and temperatures end up being low during the end of the month, EPB loses money because there is less consumption than projected, but the TVA bill to EPB is based on the high demand level.

That is what happened in July when the lower demand caused EPB to have electric sales at nine percent less than expected, causing revenue to be below budget. The opposite is true when a month begins with mild temperatures and then ends up being hot.

Over the past five years the area has had more extremes in weather than in the past. This includes variations of temperatures and severe storms which both impact cost to EPB.

Harold DePriest, EPB president and CEO, told the board that he would like to consider an adjustment to the monthly customer charge to even out the business’ income throughout the year. 

He indicated that a customer charge adjustment could be a way to offset the costs of weather-related anomalies, and asked the board to think about it for the next month.

The matter could be discussed at the September meeting of the EPB board.


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