How Customer Revenue is Used

Residential Rates

Ripley Power & Light’s customers enjoy some of the lowest electric rates in the country.

We buy our electricity from the Tennessee Valley Authority, which has a history of providing lower-cost electric power. For residents in the TVA region, for example, the average cost of one kilowatt-hour — the amount of electricity it takes to burn ten 100-watt light bulbs for one hour — is 6.4 cents, while the national average is 8.5 cents.

The purchase of electricity is a large amount of Ripley Power & Light’s electric cost. About 82 cents of every dollar paid by our customers for electricity is used to purchase energy from TVA.

The chart below shows Ripley's residential electric rate; it should be used to determine an estimation only.

Customer Class	Type of Charge	Retail Rates ($)
RS Residential	Customer	6.92
	First 800 kWh	0.08252
	Over 800 kWh	0.07326

Fuel Cost Adjustment

Tennessee Valley Authority's Board has adopted a quarterly Fuel Cost Adjustment in response to volatile swings in energy costs. This allows TVA to adjust its rates up or down each quarter to reflect the forecasted difference in fuel and purchased power costs. The adjustments are made each January 1, April 1, July 1, October 1.

Many utilities across the nation and most of TVA’s neighboring utilities use similar mechanisms to adjust their rates. Adjusting rates quarterly has less impact on customers and prevents large movements in rates in either direction.

Ripley Power & Light passes through TVA's Fuel Cost Adjustment to our customers. It does not change our basis electric rates to our customers.