TVA announces retail rate increase of 1.5%
To become effective October 1st
Customers in the Tennessee Valley Authority’s distribution area will sioon see a slight increase in the rates they pay for electricity. The TVA board of directors approved a 1.5 percent retail rate increase at their meeting on August 22nd. The sluggish economy and recent declines in electricity sales seem to be contributing factors. “While we never like to raise rates, this small adjustment is necessary to meet our 2014 revenue requirements and operate our system safely and reliably,” said TVA President and CEO Bill Johnson. The Tennessee Valley Authority board of directors also approved a $10.5 billion fiscal year 2014 budget which anticipates 4.6 percent lower sales for the coming year and is about 6 percent less than 2013. TVA’s action will be the first rate increase by the wholesaler since 2011.
TVA’s action will affect more than 9 million residents of the Tennessee Valley including the 45,000 members of Appalachian Electric Cooperative. As TVA applies this rate increase to its distributors, Cooperative members can expect an increase of approximately $1.50 on their electric bill for every 1,000 kilowatt-hours consumed each month. Appalachian Electric Cooperative will not add any local increase to the TVA rate.
AEC’s average member uses about 1,500 kilowatts each month; at that level, this action would result in an increase of approximately $2.25 on their electric bill. Members with a monthly consumption of 2,500 Kwh would see an increase of about $3.75. At 1.5%, this latest TVA increase will be less than the rate of inflation, which is about 2.9% (according to the Consumer Price Index) since October 2011. Appalachian Electric Cooperative is committed to providing safe, efficient and reliable electric service to those members we serve. We are also committed to doing so at an affordable cost.