NES warns customers of 10% bill increases after fuel cost adjustment charges

Higher heating costs projected for this winter amid pandemic
Posted at 5:19 PM, Jul 04, 2022
and last updated 2022-07-04 18:19:15-04

NASHVILLE, Tenn. (WTVF) — The Tennessee Valley Authority (TVA) is experiencing record-breaking fuel costs, which will mean customers' July bills will have a higher Fuel Cost Adjustment (FCA) charge.

The increase in the FCA charge means Nashville Electric Service (NES) is anticipating an approximate 10% increase from June to July for customers' bills.

TVA boasts some of the lowest electric rates in the nation and regularly eliminates costs — totaling over $800 million over the past 10 years — to keep rates flat for customers. This anticipated bill increase is unwelcome, but it was borne of a combination of many factors.

Since European countries are asking the U.S. and other countries to reduce or eliminate reliance on Russia's natural gas supply, the United States is turning to its own supply. As domestic supply is decreased, the price of the product becomes higher.

Additionally, record temperatures during the June heatwave that have been projected into July mean customer energy usage is likely to be higher than normal.

“NES is dedicated to helping customers keep their lights on despite the fuel cost adjustment charge rate increase,” said Teresa Broyles-Aplin, NES President and CEO. “We understand rises in cost are never ideal, which is why we have programs like Home Uplift and Project Help. Information on these programs and more are available on If any customers find themselves struggling to pay their bill, please call NES Customer Relations at (615) 736-6900.”

NES is the 11th largest public electric utility in the nation. It has recently provided customers with advice on ways to reduce heat in homes and therefore reduce energy usage, and it halted disconnections due to missed payments in the month of June.