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.