TVA Raises Rates And Cuts Efficiency Programs To Fund Capital Projects


Tritium is produced in the unit 1 reactor at Watts Bar. Currently, TVA is completing unit 2. Credit: Stephen Jerkins

TVA rates are increasing – in part – because of the number of construction projects underway, including the completion of Watts Bar Unit 2. Credit: Stephen Jerkins

Power bills will go up by 1.5 percent starting in October as part of a TVA rate hike approved by the utility’s board Thursday.

Before raising electricity prices, Tennessee Valley Authority executives say they made $500 million in cuts. That includes a 25 percent reduction in energy efficiency programs, against the wishes of TVA board member Marilyn Brown.

“I’m hoping though that it is simply part of a bridge move to a future with an expanded commitment to energy efficiency versus the whip saw approach that the program has had over the years.”

  • For a residential customer using 1,000 kwh a month, the rate increase will cost roughly $1.70.
  • A 1.5 percent increase equates to nearly $200 million in revenue for TVA.
  • The underlying electric rate (without the fluctuating fuel cost adjustment) was also raised by 1.5 percent in October 2013.

TVA directors also voted Thursday to replace a coal plant in Memphis with natural gas, despite a campaign by the Sierra Club to push wind and solar alternatives.

Please keep your community civil. Comments will be moderated prior to posting, and Nashville Public Radio reserves the right to approve them at its discretion. Comments containing links promoting goods, services - even noble organizations - will not be published. Your comments may include external links, but all comments with links will be delayed as they are reviewed. Comments containing profanity will be rejected.