Customers can expect a 20 percent rate increase on their October electric bills — the largest jump in more than 30 years.TVA President and CEO Tom Kilgore announced a fuel adjustment rate increase of 17 percent at the agency’s board of director’s meeting this morning at its Knoxville headquarters. The increase will go into effect Oct. 1. The board also approved an additional 3 percent base rate increase, also to take take effect Oct. 1.
TVA’s quarterly fuel adjustment, a provision approved by the board of directors in 2003, passes along fluctuations in the price of coal, natural gas and other fuels to its customers.
The base rate is the guaranteed rate customers pay each month, and changes to the rate require a board vote. Base rate revenue covers non-fuel-related expenses such as energy efficiency and demand response programs and improvements to existing fossil, hydro and nuclear plants....MORE
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J. Miles Cary
Tom Kilgore, president and CEO of TVA,
talked about the rising cost of coal and
the continued effect of the drought on
hydro generation.
