As the economy of the Tennessee Valley has gained back most of the power it lost during the Great Recession, the cost of power in the region has declined over the past four years.
TVA said Monday its average cost of delivered power has declined from 7.2 cents per kilowatthour in fiscal 2011 to 6.9 cents per kilowatthour in fiscal 2015. The rate savings, mainly due to lower operating expenses and cheaper fuel, helped make TVA more competitive with neighboring utilities in the South, although some TVA industrial rates remain above the regional average.
Bill Johnson speaks as the TVA board of directors hold a public meeting at TVA’s Chattanooga Office Complex. The rate cuts came despite relatively flat electricity sales coming out of the recession and growing profits for TVA.
The Tennessee Valley has added back most of of the jobs lost in the region during the 2009-2010 downturn. TVA’s power demand, however, has not returned to its 2007 level, in part, due to improved energy efficiency at many homes and businesses.
Despite only sluggish growth in power sales, the federal utility has boosted net income in each of the past four years, rising to a record $1.1 billion in the fiscal year ended Sept. 30.