TVA board OK's 2 percent rate increase in electric rates in October

photo Staff File Photo by Matt Fields-Johnson The two cooling towers at TVA's Bellefonte nuclear power plant in Hollywood, Ala., tower 500 feet above the ground.

Electricity from TVA will cost more come October.

TVA's board today unanimously approved a 2 percent rate increase effective Oct. 1.

The increase is to help the utility to cover a $234 million shortfall in its fiscal 2012 budget.

The rate increase will amount to about $1.60 on the average residential bill.

The action came after the board had earlier voted unanimously to restart construction on the half, finished, mothballed Bellefonte Nuclear Plant in Hollywood, Ala.

That action by the board followed the board's listening to about 70 speakers who either supported or opposed nuclear power and the completion of Bellefonte.