KNOXVILLE - TVA will change the way it prices its power for distributors next April under a plan adopted today to encourage more energy conservation during higher demand periods.
In the biggest change in its rate structure since 1992, TVA directors voted to charge both a demand and a usage charge that will vary by season and time of day.
By October 2012, rates for the 8 million consumers who use TVA power will shift to time-of-day prices that encourage electricity users to shift their use of electric appliances away from afternoon peak periods in the summer or morning peaks in the winter.
"This is a major change for us, but we hope that by reducing the peak demand when power is most expensive that we can help lower overall costs," said Jack Simmons, president of the Tennessee Valley Public Power Association.
For complete details, see tomorrow's Times Free Press