KNOXVILLE, Tenn. — The Knoxville Utilities Board said customers will see higher energy bills after the Tennessee Valley Authority's recent rate increase.
KUB said it became aware of TVA’s 4.5% rate increase on Thursday when the TVA Board of Directors approved it.
TVA said its board unanimously approved a 4.5% increase "to ensure the region has the energy it needs to meet growing demand and economic development."
According to a TVA release, the 4.5% rate increase “translates to an average increase of about $3.50 on a typical residential energy bill each month.”
KUB said its average residential bill was approximately $127 for fiscal year 2023.
The 4.5% is passed directly from TVA to KUB customers for power purchased from TVA, according to a statement from the utilities board. KUB does not receive a percentage of the 4.5%.