Power rates to rise again in October

Power rates to rise again in October

September 15th, 2012 by Staff Reports in Business Around the Region

Tennessee Valley Authority headquarters and TVA logo

Tennessee Valley Authority headquarters and TVA logo

Photo by Miranda Harple

The Tennessee Valley Authority will begin its new fiscal year with another rate increase due to higher fuel expenses. Despite the decision last month by the TVA board not to raise base rates, the federal utility is raising the fuel portion of its electricity charges again in October.

For the typical Chattanooga household, EPB said the higher fuel cost adjustment will raise bills by nearly 1.1 percent, or $1.61 for the average residential customer. TVA spokesman Scott Brooks said the lack of rain in parts of the Valley cut TVA's hydroelectric generation by 25 percent this summer, cutting TVA's supply of its cheapest power. Even with next month's increase in the fuel cost adjustment, TVA rates will still be 1 percent lower than a year ago, Brooks said.


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