KNOXVILLE – Electric rates will increase by 1.5 percent in October under a $10.37 billion budget adopted today by directors of the Tennessee Valley Authority.
The rate increase for fiscal 2018 marks the third year in which TVA is raising its base retail rates less than the rate of inflation and will leave rates below where they were five years ago due to a drop in TVA’s average fuel costs since 2013.
“This modest rate increase recognizes the need for TVA to continue to to build on the financial and operational performance improvements we have made over the past three years, while still providing an effective retail rate below 2013 levels that remain among the lowest in the region,” TVA President Bill Johnson said.
TVA’s new rates, which were approved by the 6-member TVA board today in a unanimous vote, will still be 2 percent lower than they were in 2013, TVA Chief Financial Officer John Thomas said. TVA estimates it will be 9th lowest priced utility for retail rates among the top 100 utilities in the country.
The increase, which will generate an extra $195 million of additional revenue, will cost the typical residential customer in Chattanooga that uses 1,292 kilowatt-hours of electricity a month, nearly $2 more on his or her monthly power bill.