TVA Generation Cost Adjustment

Starting in July 2023, Cullman Electric Cooperative members saw a line item listed on their monthly bill under the title TVA Generation Cost Adjustment (GCA). This is NOT a new fee. Before now, this fee was included as part of the monthly energy charge.

The Generation Cost Adjustment is a fee TVA charges for the variable costs of generating electricity — primarily natural gas TVA uses at its power plants or the cost of electricity TVA purchases from other power companies. If the costs of generating electricity are higher than what TVA budgeted, the GCA goes up. If costs are lower, the GCA will go down. Historically, this fluctuation has been very small (fractions of a penny each month), but as TVA closes more of its coal power plants, it has become more reliant on natural gas and purchased power from other companies, and recently, those costs have been more substantial.

Important Reminders about the Generation Cost Adjustment (GCA):

1. The TVA GCA is not a new fee. The GCA was previously included as part of the monthly Energy Charge on the bill.

2. The GCA covers TVA’s variable costs of generating electricity — primarily its natural gas power plants or electricity TVA purchases from other power generation companies on the open market.

3. Cullman EC has decided to list the GCA as a separate line item so members can see the impact TVA’s changing cost of generating electricity has on their power bills.

4. This is a pass-through fee determined by TVA each month and calculated per kWh used.