MJP –
Tennessee Valley Authority customers in Alabama should expect to pay more to keep the lights on starting in October. This decision was made after a 5.25% rate hike was approved by the utility’s board on Thursday.
Its rate competitiveness and increasing infrastructure needs were deemed sufficient by the board to warrant the hike.
People don’t pay rates; they pay bills, and that’s what really counts. While speaking with WDEF in Knoxville, TVA President and CEO Jeff Lyash acknowledged that this is a problem that many families in the area are dealing with at home. “We at TVA are just as opposed to price hikes as you are, which is why we are always trying to find new ways to save hundreds of millions of dollars annually.”
Investing $16 billion in infrastructure in 2027 is a direct result of the region’s growing population, according to the publication.
According to Wade White, who is the head of the board’s Rate Committee, the TVA has some of the lowest rates compared to its competitors.
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“We’re very mindful of our rate competitiveness, and we look at the rate of our electricity relative to our peers to make that determination,” Wade said, as reported by Rocket City Now. We jumped up to fourth place from ninth place among our regional competitors in 2019. Consequently, our charges have grown more affordable within this time frame.
This last year, the average TVA electricity bill was $138. Customers may expect to see a $4.35 rise to their electricity bills as a result of the latest rate increase, which follows a 4.5% hike in 2023.
