Business Electric Rates
How KUB Purchases Electricity
The Tennessee Valley Authority (TVA) produces electricity and sells it to distributors, like KUB, which deliver electricity to homes and businesses. TVA is KUB's single provider of electricity.
As TVA's costs for non-controllable items such as coal, natural gas, and purchased power rise and fall, TVA passes 100 percent of the cost increase or decrease along to distributors through its Fuel Cost Adjustment (FCA). TVA may make adjustments each month as needed to reflect the difference in projected and actual fuel costs. The FCA is a system of pricing electricity that is similar to how natural gas is priced.
Because KUB is not-for-profit, KUB passes 100 percent of the TVA increases/decreases to customers. Therefore, KUB business electric rates may vary each month. The FCA will also impact those KUB customers who are billed each month for private outdoor lighting. The charges for the private outdoor security lights will automatically adjust as the TVA FCA moves rates up or down.
Additional service charges not listed below may apply to customer bills. Contact KUB at 865-524-2911 for the most accurate billing information.
The Difference in Demand and Consumption Charges
Both a customer's energy demand and consumption are measured during each billing cycle. A customer's bill is based on one or both measurements depending on the rate classification and usage threshold.
Demand (kW): A customer's demand is the maximum power used at any point in the billing cycle. Using multiple appliances at the same time increases demand, while demand would remain steady if those appliances were used at different times during the day. Demand is represented as kilowatts (kW) on customer bills.
Consumption (kWh): A customer's consumption is the total power used in the billing cycle. Using multiple appliances at the same time does not impact consumption, as the amount of energy used is the same when appliances are used together or separately. Consumption is represented as kilowatt hours (kWh) on customer bills.
In the billing example here, both customers would be charged the same demand charge. Although one customer used more total energy, and would have a larger total bill, both customers' usage peaked at the same amount of demand. This means the same amount of capacity must be available at any given time to support each customer.
Current Business Electric Rates
| Commercial GSA-1 Electric Rates | |
| Cost per Kilowatt Hour | $.0.12921 |
| Basic Service | $32.00 |
| Commercial GSA-2 Electric Rates | |
| 0-50 KW | $0 |
| Additional KW | $18.10 |
| First 15,000 kWh | $0.16102 |
| Additional kWh | $0.07218 |
| Basic Service | $104.00 |
| Commercial GSA-1 TOU Electric Rates | |
| KW | $2.18 |
| Onpeak kWh | $0.22288 |
| Offpeak kWh | $0.08809 |
| Basic Service | $32.00 |
| Commercial GSA-2A TOU Electric Rates | |
| KW | $4.94 |
| Onpeak kWh | $0.23762 |
| Offpeak kWh | $0.10283 |
| Basic Service | $104.00 |
| Commercial GSA-2B TOU Electric Rates | |
| KW | $7.25 |
| Onpeak kWh | $0.21167 |
| Offpeak kWh | $0.07688 |
| Basic Service | $122.00 |
| Schedule | Standard Service |
| GSA | Contract Demand of 5,000 KW or less |
| LS | Outdoor Lighting Rates |
| LED | Light-Emitting Diode Outdoor Lighting Rate |
| EVC | Electric Vehicle Charging Power Rate |
| Schedule | Standard Service TOU |
| GSA-TOU | Contract Demand of 1,000 KW or less |
| Schedule | Non-Standard Service |
| IP5 | Interruptible Power - 5 minute notice |
| IP30 | Interruptible Power - 30 minute notice |
| PF | Power Flex |
| STP | Start-Up and Testing Power |
| GSB | Contract Demand is greater than 5,000 kW but not more than 15,000 kW |
| GSC | Contract Demand is greater than 15,000 kW but not more than 25,000 kW |
| GSD | Contract Demand is greater than 25,000 kW |
| MSB | Manufacturing - Contract Demand greater than 5000 but less than 15000kW |
| MSC | Manufacturing - Contract Demand greater than 15,000 kW but less than 25,000 kW |
| MSD | Manufacturing - Contract Demand greater than 25,000 kW |
| TDGSA | Time of Use - contract demand is greater than 1,000 kW but not more than 5,000 kW |
| TDMSA | Manufacturing Time of Use - greater than 1,000 kW but not more than 5,000 kW |
TVA produces electricity and sells it to distributors, like KUB, which delivers electricity to homes and businesses. (TVA is KUB's single provider of electricity). As TVA's costs for non-controllable items such as coal, natural gas, and purchased power rise and fall, TVA passes 100 percent of the cost increase or decrease along to distributors through its Fuel Cost Adjustment (FCA). TVA may make adjustments each month as needed, to reflect the difference in projected and actual fuel costs. The FCA is a system of pricing electricity that is similar to how natural gas is priced. KUB passes 100 percent of TVA increases/decreases to customers, therefore, KUB business electric rates may vary each month. The FCA will also impact those KUB customers who are billed each month for private outdoor lighting. The charges for the private outdoor security lights will automatically adjust as the TVA FCA moves rates up or down. Note: Additional service charges not listed below may apply to customer bills. Contact KUB at 865-524-2911 for the most accurate billing information.