The Tennessee Valley Authority is increasing its base rate by 1.5 percent, the first increase by the nation’s largest public utility in two years, according to the Associated Press. However, according to the TImes Free Press of Chattanooga, most of that increase will be offset.
The TVA”s board of directors approved the base rate hike and a $10.5 billion fiscal year 2014 budget at its meeting on Thursday. The new fiscal year begins Oct. 1.
The rate adjustment will add about a $1.50 to the monthly power bill of a customer using 1,000 kilowatt-hours of electricity.
But, said the Times Fress Press, “most of that increase is being offset with lower monthly fuel cost adjustments by TVA, which are projected to lower the average electric bill next month by about 6 percent. Abundant rains this summer have helped reduce TVA’s average fuel costs, which are adjusted each month
TVA’s budget for the upcoming year anticipates 4.6 percent lower sales year over year and is about 6 percent less than 2013.
TVA provides power to about 9 million people in Alabama, Georgia, Kentucky, Mississippi, North Carolina, Tennessee and Virginia.