KNOXVILLE – America’s biggest public power utility will extend for another year the price breaks it has provided during the pandemic for the local power companies that provide electricity to more than 10 million people under a budget plan adopted Wednesday.
The Tennessee Valley Authority, which has cut both its operating costs and debt expenses for nearly a decade, will extend its 2.5% pandemic relief rebate provided this year as a “pandemic recovery” credit and pledged to soon develop a plan to extend the credit into 2023. TVA President Jeff Lyash said the utility has paid down its debt by nearly $8 billion and cut its annual operating expenses by more than $800 million over the past decade to allow for the reduction in the price of electricity.
The pandemic recovery credit being provided to all TVA customers is in addition to the 3.1% credit TVA has provided to the 144 local power companies in the Tennessee Valley that have signed 20-year power purchase contracts with TVA.
“This credit is putting real dollars back into Valley communities to meet local needs,” Lyash said. “Because of TVA’s strong operational and financial performance, we have an opportunity and responsibility to use these resources to provide continued support for customers, businesses and communities.”
Local power companies like Chattanooga’s EPB ultimately set retail electricity prices, and Lyash said more than half of the 153 distributors of TVA power didn’t raise their rates this year, in part due to the pandemic credit.