TVA Board Approves 1.5% Retail Rate Increase

Thursday, August 22, 2013

The Tennessee Valley Authority board of directors approved a $10.5 billion fiscal year 2014 budget at its meeting Thursday and a 1.5 percent retail rate increase – TVA’s first increase in two years.

The rate adjustment will add about $1.50 to the monthly power bill of a residential consumer using 1,000 kilowatt-hours of electricity.

5px;"> “While we never like to raise rates, this small adjustment is necessary to meet our 2014 revenue requirements and operate our system safely and reliably,” said TVA President and CEO Bill Johnson. “We will also make critical capital investments to keep reliability high and meet environmental standards and contribute to paying down debt.”

TVA’s fiscal year 2014 budget anticipates 4.6 percent lower sales year over year and is about 6 percent less than 2013, including capital expenditures of $3.3 billion for Watts Bar 2 nuclear plant and clean air controls at Gallatin Fossil Plant.

Mr. Johnson said TVA’s priorities include “living within our means” by bringing operations and maintenance expenses in line with recent trends in declining electricity sales and revenues.

“Demand for our product is down and that won’t change anytime soon. The weather, the economy, energy efficiency/demand response, and rate design are all factors,” he said. “We’re working harder than ever to reduce our costs, but they are not declining at the rate of our sales and revenues.”

TVA is executing a plan to reduce O&M costs by $500 million by 2015 with employees and leadership identifying efficiencies, cost reductions and cost avoidance opportunities. Nearly $150 million in reductions have been achieved this fiscal year with plans for an additional $150 million by the end of 2014 and another $200 million in 2015.

“We are taking action to improve TVA’s operations and financial health so it continues to serve the region for years to come,” Mr. Johnson said.

Additional priorities include evaluating future operations of the remainder of the coal fleet, preserving the unfinished Bellefonte nuclear plant as an option for future power generation, continuing to explore Small Modular Reactor nuclear technology, promoting economic development in the region and updating the Integrated Resource Plan, the long-term strategy for TVA’s energy supply as they enter FY14.

Mr. Johnson said that TVA employees remain focused on delivering outstanding service while carrying out TVA’s unique mission of delivering safe, clean, reliable energy at low rates as well as promoting economic development and providing resource stewardship.

The new budget and rate adjustment go into effect with TVA’s new fiscal year, which begins Oct. 1, 2013.

            The board also approved new programs to foster economic growth in the Tennessee Valley. The TVA Valley Commitment Program will give credit to manufacturing customers for their ongoing commitment to the Valley. The Small Manufacturing Rate Program will give small industrial customers a rate alternative for operating during off-peak demand periods. These new programs and enhancements are intended to serve as interim measures while TVA works with customers and other stakeholders on a longer-term rate strategy, Mr. Johnson said.

            In other action, the board:

  • Approved a five-year extension of the Environmental Adjustment; up to $3.5 billion in contracts for fuel and purchased power, and up to $4 billion of long-term bonds.
  • Approved TVA entering contracts for hydroelectric modernization and transmission system construction and modification services.
  • Approved changes to the annual and long-term employee performance goals incentive programs.

 


Stokes Photo Book At Zarzours Daily This Week, Other Locations

The Stokes photo book of rare old Chattanooga pictures, which sold out the initial edition of 1,000 copies, will be available at Zarzours Restaurant on Rossville Ave. off Main Street behind Fire Hall #1 this coming week Monday-Friday from 11 a.m.-3 p.m. each day. Chattanooga In Photos Around the Turn of the Century: The Remarkable Stokes Collection is also available at ... (click for more)

Red Bank Updating Court Software; Sets Hotel Tax Though City Still Waiting For Hotel

City Manager Randall Smith told the Red Bank Commissioners that the court clerk and deputy clerk are in dire need of upgraded court software. He said the department clearly needs it to increase efficiency. The increase in efficiency will contribute toward the expense. Additionally, he said two court fees have been increased and this will pay for the new software package in one and ... (click for more)

A Letter To The NAACP

I believe when a "unarmed" man is evil, he will try to beat a police officer on his head in hopes to knock him out, in hopes to kill him. We saw the bruises on the officer's face.  This evil force tried to take his gun away from him , Proof was in the autopsy.  Why did Michael Brown  try to take his gun away from him? Exactly, to kill the officer.  ... (click for more)

Roy Exum: Advice: Just Be Normal

Matthew Kerlin, by his own admission, claims to be just a normal guy. But I am of the opinion, after reading his speech following Samford University’s Winter Commencement exercises, that the university’s Assistant Dean for Spiritual Life is a bit more than that. Dr. Kerlin knows college kids well and his advice to the most recent flock of America’s graduates resonates with brilliance. ... (click for more)

UTC Cagers Upset No.7 Stanford

"Defense kept us in the game and our fans are great!." UTC sophomore Moses Johnson after the 54-46 win.   The giant killer has done it again. Relying on hustle, determination, key 3-pointers and 10 made free throws down the stretch the Chattanooga Mocs defeated visiting No.7 Stanford women 54-46 Wednesday at McKenzie Arena. Playing before 2,128 cheering ... (click for more)

Vols Land 4-Star JUCO Running Back Alvin Kamara

KNOXVILLE, Tenn. – Tennessee football coach Butch Jones has signed junior college four-star running back Alvin Kamara, who is from Norcross, Ga., and originally signed with Alabama and then transferred to Hutchinson (Kan.) Community College. Information on Kamara: ALVIN KAMARA R-Sophomore • Running Back • 5-11 • 200 Norcross, Ga. • Norcross H.S./Alabama/Hutchinson ... (click for more)