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 3.7 cents per kWh, with pricing varying between 8.2 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, 2013, contract prices will escalate 5 percent per year beginning in 2014. 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	8.286
	Mon-Fri 6am-12pm and 8pm-12am; Sat & Sun 6am-12am	4.571
	Everyday 12am-6am	3.071
June & September	Mon-Fri 12pm-8pm	4.759
	Mon-Fri 6am-12pm and 8pm-12am; Sat & Sun 6am-12am	3.528
	Everyday 12am-6am	2.964
January & February	Mon-Fri 6am-10pm	4.086
	Mon-Fri 10pm-12am; Sat & Sun 6am-12am	3.398
	Everyday 12am-6am	3.115
December & March	Mon-Fri 6am-10pm	3.632
	Mon-Fri 10pm-12am; Sat & Sun 6am-12am	3.391
	Everyday 12am-6am	3.115
April, May, October, & November	Mon-Fri 6am-10pm	3.520
	Mon-Fri 10pm-12am; Sat & Sun 6am-12am	3.151
	Everyday 12am-6am	2.985