Rates frequently asked questions
Simple answers about common rate topics
Rates can feel confusing, especially when charges change or when a meter may qualify for a different rate. These frequently asked questions explain two common topics: TVA’s fuel cost adjustment and MTE’s Supplemental Residential Rate.
This page helps members understand rate-related questions that may affect their electric bills. You’ll find simple explanations of TVA’s fuel cost adjustment, why it can change from month to month, and how it appears on MTE’s rate schedule. You’ll also find information about the Supplemental Residential Rate, including what types of additional residential meters may qualify, what may not qualify, and how to contact member support for help.
Where can I learn more about rates?
MTE’s Member Support team can help answer questions about rates and your account.
You can also view MTE’s detailed rate schedule at mte.com/Rates.
Fuel cost adjustment FAQs
What is the TVA fuel cost adjustment (FCA)?
The Tennessee Valley Authority (TVA) generates electricity for nearly 10 million people across the seven-state Tennessee Valley.
TVA sells power to local power companies, including MTE. MTE then delivers that power to homes and businesses in our service area.
The fuel cost adjustment (FCA) helps TVA recover the cost of fuel and purchased power. In this case, “fuel” does not mean gasoline. It means the resources used to generate electricity, such as nuclear, natural gas, coal, hydro, and renewable energy.
Like many everyday costs, these prices can change from month to month. Weather, supply and demand, and global energy markets can all affect the cost of generating electricity.
How is the fuel cost adjustment calculated?
TVA calculates the FCA each month.
The amount is based on TVA’s expected fuel and purchased power costs for that month. It is also adjusted for any over- or under-collections from previous months.
Because those costs can change, TVA’s monthly FCA can also change. The monthly FCA is listed on MTE’s rate schedule.
Why does TVA have a fuel cost adjustment?
TVA, like MTE, operates on a not-for-profit basis.
The FCA helps TVA recover fuel and purchased power costs as they happen. This helps TVA better align the money it receives with the cost of making and buying power.
When the cost of fuel changes, the cost to generate electricity can also change. The FCA is the tool TVA uses to pass those monthly increases or decreases along to local power companies like MTE and, in turn, to members.
What affects fuel cost adjustment changes?
Fuel costs are mainly affected by temperature and supply-and-demand conditions.
For example, extreme weather can increase the need for electricity. That higher demand can affect the cost of the resources used to make power, including natural gas, coal, nuclear, and other energy sources.
Many utilities use similar rate adjustments. Some call them purchased cost adjustments, or PCAs. These adjustments help account for changes in power generation costs and the impact of high electricity demand.
Supplemental Residential Rate FAQs
What is the Supplemental Residential Rate?
The Supplemental Residential Rate is a residential rate that may be available to members who have an additional electric meter at the same location as their home.
The additional meter must be on the same parcel as the home and used primarily for residential purposes. This may include lighting, household appliances, or the personal comfort and convenience of the home.
What types of service may qualify?
The Supplemental Residential Rate may apply to qualifying residential uses such as:
- Detached garage
- Electric gate
- Storage or tool shed
- Well pump
- Personal shop
- Pool house or pool pump
- Irrigation system
How can the Supplemental Residential Rate help members save money?
Members with a qualifying additional meter may be able to move that meter from a business rate to the Supplemental Residential Rate.
If the meter qualifies, members may see a slight decrease in the monthly Basic Service Charge. Sales tax is not part of this rate because it is classified as residential.
What types of service may not qualify?
Some uses may not qualify for the Supplemental Residential Rate, including:
- Barns and sheds
- Grain bins
- Tobacco stripping rooms
- Animal shelters
- Other farm uses that fall into the agricultural category
These uses are not considered residential for this rate.
Are there other restrictions?
Yes. The Supplemental Residential Rate is not available for accounts with:
- Demand over 25 kW
- Monthly use over 7,500 kWh
- Power needs that require three-phase service
How do members sign up for the Supplemental Residential Rate?
MTE has already identified and moved existing members who qualify for the Supplemental Residential Rate as a courtesy.
If you think one of your meters may qualify but do not see the Supplemental Residential Rate on your bill, contact MTE Member Support. Our team can review the additional meters on your account and help determine whether they meet the rate criteria.
New services may also qualify if they meet the rate requirements. Members can sign up by phone or in person.
Contact MTE’s Member Support Team
We understand our members expect more than just affordable, reliable, and safe electricity. You also expect outstanding member service, which includes helping you find answers and solutions to your concerns.
From myMTE app issues to billing questions and everything in between, our member support team is always here to provide you with the help you need. We've put together some useful information for you, but feel free to contact us directly to discuss any additional concerns you have. 
Email:info@mte.com
Phone 877-777-9020