By Dave Flessner
Business Editor
The Tennessee Valley Authority plans to cut electric rates this fall from 3.5 to 5 percent.
TVA board members today directed the agency’s staff to develop a fuel adjustment charge and reduce base electric rates from $350 million to $500 million in the fiscal year that begins Oct. 1.
The board will approve a budget for the next fiscal year in late July and set its specific rates then.
The fuel adjustment charge would vary according to what TVA pays for coal, natural gas, nuclear fuel and purchased power. The adjustment would be made quarterly and would first be implemented next January.
The rate reduction in October follows two TVA rate increases. TVA raised its rates 7.5 percent in October 2005 and increased them 9.95 percent in February.
E-mail Dave Flessner at dflessner@timesfreepress.com
See tomorrow’s Chattanooga Times Free Press for full coverage.
Business Editor
The Tennessee Valley Authority plans to cut electric rates this fall from 3.5 to 5 percent.
TVA board members today directed the agency’s staff to develop a fuel adjustment charge and reduce base electric rates from $350 million to $500 million in the fiscal year that begins Oct. 1.
The board will approve a budget for the next fiscal year in late July and set its specific rates then.
The fuel adjustment charge would vary according to what TVA pays for coal, natural gas, nuclear fuel and purchased power. The adjustment would be made quarterly and would first be implemented next January.
The rate reduction in October follows two TVA rate increases. TVA raised its rates 7.5 percent in October 2005 and increased them 9.95 percent in February.
E-mail Dave Flessner at dflessner@timesfreepress.com
See tomorrow’s Chattanooga Times Free Press for full coverage.
