Get ready to pay more: TVA approves 5.25% rate increase for customers - WTVC
Get ready to pay more: TVA approves 5.25% rate increase for customers
CHATTANOOGA, Tenn. — You will soon be paying a little more to keep the electricity on.
That's because the board of directors at the Tennessee Valley Authority (TVA) approved a 5.25 percent rate increase at its meeting on Thursday.
This is on top of a 4.5 percent rate increase the board approved last year.
A release from TVA says the increase is needed "to fund ongoing construction and energy development," as it continues to plan one of the largest gas buildouts of any utility in the nation, replacing aging coal plants with methane gas plants.
TVA's release says the average power bill for a customer in 2023 was $138. The rate increase would be an additional $4.35 each month.
We recognize that people don’t pay rates, they pay bills, and that matters,” said Jeff Lyash, TVA President and CEO. “We know this is a kitchen table issue for many families across our region. At TVA, we don’t like price increases any more than you do, and that’s why we continually work to reduce expenses by hundreds of millions of dollars each year. We have done everything possible to absorb costs as we invest in the reliability of our existing plants, construct new generation to keep up with growth and maximize solar to produce more carbon-free energy.
The rate increase will start showing up on customer's bills after October 1st.
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