TVA electric rates going up

TVA electric rates going up

April 17th, 2012 in Opinion Free Press

The TVA headquarters building is located in downtown Chattanooga.

The TVA headquarters building is located in downtown...

Photo by Angela Lewis /Times Free Press.

Our EPB gets its electricity, of course, from the Tennessee Valley Authority. And TVA has to set its rates to cover all of its expenses.

So it is of particular interest to all of us who have light and heat from TVA through our EBP that the Tennessee Valley Authority has announced that it will raise its wholesale rates 2.1 percent in May.

That's to cover anticipated higher expenses from buying more electric power from other utilities that supplement the power the TVA generates.

What's the higher adjustment likely to cost average Chattanooga households? The expectation is that the average added cost will be $2.28 a month, according to EPB Chief Financial Officer Greg Eaves.

Nobody likes any increased costs, of course, but TVA says its fuel costs are still 1.5 percent below the costs a year ago.

Fortunately, "natural gas prices are the lowest they have been in a decade," according to Randy Nipp, president of the Tennessee Gas Association. He said: "Gas prices are very attractive for homes heating and appliances, and there is a big push now to expand gas into the vehicle market."

In our area, whether we depend upon electricity or natural gas or both, we are much more fortunate economically than are homeowners in most other parts of our country.