TVA to raise electric rates

With cheaper fuel, electricity costs remain fairly stable over past five years

TVA directors adopted a $10.7 billion spending plan for the federal utility on Wednesday, Aug. 22, 2018, for the fiscal year that begins Oct. 1 that continues its long-range plan for annual rate increases below the rate of inflation.

KNOXVILLE - The Tennessee Valley Authority will boost electric rates by another 1.5 percent in October, adding about $2 more to the typical monthly power bill in Chattanooga.

TVA directors approved the $199 million rate hike Wednesday - the sixth such increase in as many years - as part of a $10.7 billion budget that TVA supporters say leaves the federal utility in its strongest financial condition in decades and could negate the need for such rate hikes in the next several years.

"TVA is in the best shape it has been in a very long time, and we would hope that would mean we won't have these annual rate increases going forward, barring some unexpected problem," said Doug Peters, president of the Tennessee Valley Public Power Association, which represents the 154 local power companies that distribute TVA power.