Does “fuel” refer to gasoline?
This is not about recouping increased gasoline charges for TVA vehicles. The fuel costs this adjustment addresses are the fuels TVA uses to generate electricity, which are primarily coal and natural gas. The prices of both coal and natural gas have grown increasingly volatile. Additionally, when TVA cannot generate enough electricity to supply the power demand of Valley customers, it has to purchase electricity on the open market. That is necessary but expensive, and the associated costs can be recovered through the Fuel Cost Adjustment.
