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Pricing

Seasonal and time-of-day prices for hourly delivered energy output are set as of the date of execution of the contract agreement, reflecting varying demand for power at different seasons and times of the day.

A typical annual average price could be 3.6 cents per kWh, with pricing varying between 5.1 cents per kWh on hot, high-demand afternoons in July and August, and 2.9 cents in early morning hours in the fall and spring.

The same prices and price structure apply to all technologies in the Renewable Standard Offer program. The annual average hourly base price will be escalated annually by a constant percentage over the length of the contract per the Pricing Example below.

Because prices for generation are higher during periods of peak demand, technologies that operate during peak hours (for example, solar) will receive the benefit of higher prices during those periods.

Pricing Example

For projects approved after January 1, 2014, contract prices will escalate 5 percent per year beginning in 2015. TVA can adjust the relevant levels of seasonal and time-of-day prices by 1 percent per year, but the annual average will always escalate at 5 percent. For complete details of pricing, see the Renewable Standard Offer Contract.

Month

Time of Day (CPT)

Base Price (¢/kWh)

July & August

Mon-Fri 12pm-8pm

5.121

Mon-Fri 6am-12pm and 8pm-12am;
Sat & Sun 6am-12am

4.040

Everyday 12am-6am

3.051

June & September

Mon-Fri 12pm-8pm

4.128

Mon-Fri 6am-12pm and 8pm-12am;
Sat & Sun 6am-12am

3.642

Everyday 12am-6am

2.913

January & February

Mon-Fri 6am-10pm

3.991

Mon-Fri 10pm-12am;
Sat & Sun 6am-12am

3.696

Everyday 12am-6am

3.210

December & March

Mon-Fri 6am-10pm

3.579

Mon-Fri 10pm-12am;
Sat & Sun 6am-12am

3.580

Everyday 12am-6am

3.150

April, May, October, & November

Mon-Fri 6am-10pm

3.529

Mon-Fri 10pm-12am;
Sat & Sun 6am-12am

3.437

Everyday 12am-6am

2.893

 

 

 

 

                

 

           
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