KNOXVILLE, Tenn. — The Tennessee Valley Authority unanimously approved a rate increase on Thursday that may lead to higher electricity bills across East Tennessee.
The TVA Board of Directors met Thursday in Florence, Alabama, to discuss an agenda that included several reports and proposals. Among the proposals was a 5.25% rate increase that would start on Oct. 1, 2024, according to the meeting's agenda.
The TVA board approved the rate increase, which it estimates will increase people's typical monthly electric bill by $4.35 on average.
In August 2023, the Knoxville Utilities Board said the TVA approved a 4.5% rate increase. It said as a result of that increase, its customers would need to pay more on their energy bills to compensate. It also said the increase was applied to the price KUB pays to buy power from the TVA, which is then distributed to KUB customers.
KUB previously said it did not receive any of the 4.5% increase last year. On Thursday, it said the average monthly KUB residential bill was roughly $124 in the 2024 fiscal year.
"Today, TVA's Board of Directors announced its approval of a 5.25% rate increase. TVA shared in its news release that the 5.25% rate increase 'will translate to about an additional $4.35 each month.' The 5.25% is passed directly from TVA to KUB customers for power purchased from TVA. KUB does not keep a percentage of the 5.25%," KUB said.
The meeting was streamed online. The agenda also included a report on the TVA's finances, rates and portfolio. There was also a report from the operations and nuclear oversight committee, and a proposal to increase the funding limit of the TVA's nuclear program.