TVA Approves Rate Increase this Fall

CHATTANOOGA, Tenn. (WDEF) – A board of directors at TVA have approved a rate increase starting in October.

The rate increase will be 4.5% and begin on October 1.

TVA explains,

“To ensure the region has the energy it needs to meet growing demand and economic development, the TVA Board unanimously approved a 4.5% increase in the effective rate. That translates to an average increase of about $3.50 on a typical residential energy bill each month.”

The increase will be passed on to local energy providers such as EPB.

EPB added,

“TVA projects an average increase of about $3.50 on a typical residential energy bill each month. EPB planned adjustment announced earlier this year anticipates an increase of about $5.00 on power bills for customers who use a monthly average of 1,136 kWh of electric power. So, a fair assumption would be that the average customer could expect an approximate increase of $8.50 on their monthly bills.”

The Executive Vice President and Chief Financial Officer, John M. Thomas III, told the TVA Board of Directors during their meeting in Chattanooga on Thursday that,

“While we have been very successful in reducing costs and offsetting inflation through productivity efforts, the sustained high inflation we have seen over the last two years as well as rising interest rates have put more pressure than we have been able to offset.”

TVA says they are currently working on adding nearly 4,000 megawatts of electricity production over the next year.