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The Tennessee Valley Authority reports that it intends to lower electricity rates in December because of declining fuel costs, according to the Times Free Press.
The TVA regularly adjusts in electricity prices in response to changes in the cost of production and overall rates have been falling in recent months. WTVA reports that average bills were expected to decline by around $4.50 this month, despite a slight rise in prices in October.
The Associated Press reports that the decline in December could lead to a $1.50 drop in average electricity bills.
"This decrease in the wholesale total monthly fuel cost is due to significantly lower fuel costs for September; mild temperatures, lower sales, and higher hydro generation," TVA spokesman Scott Brooks said in a statement on Friday, October 14.
Prices have been falling consistently as fuel prices drop from their dramatic spike in the first half of the year caused by the turmoil in oil-producing regions in the Middle East and North Africa. Overall, electricity rates should average around 4 percent lower than the same time last year.