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.

 


Fort Oglethorpe Arrest Report For Sept. 12-18

Here is the Fort Oglethorpe arrest report for Sept. 12-18: Zachary Brent Barnes, 24, of 781 Eagle Cliff Drive, Flintstone was arrested September 12 on charges of driving under the influence of alcohol, failure to maintain lane and speeding. Kerri Leigh Carrington, 32, of 407 South Cherokee Street, Lafayette was arrested September 12 on charges of driving while license revoked ... (click for more)

Corker Supports Bill To Train Vetted, Moderate Syrian Opposition In Fight Against ISIS

Senator Bob Corker on Thursday issued the following statement after voting for a three-month authorization to arm and train the moderate Syrian opposition in the fight against the Islamic State of Iraq and Greater Syria (ISIS): “Thus far, the administration has been sophomoric, vague and unprepared to define an approach to ISIS that meets any test of seriousness. I am willing ... (click for more)

Walking Among Memories, The USS LST-325

I have walked among the head stones at Flanders Fields and have seen the entrenchment of soldiers with only bayonet tips sticking out of the earth. Later I traveled to Normandy where I stood on the sand and made scuff marks with my shoes on Omaha Beach and climbed the hill to the magnificent American Cemetery there. I again walked among the many, many tomb stones so neatly and ... (click for more)

Roy Exum: Troubling Jameis Winston

One of the greatest things about the American legal system is that each and every crime is judged on its own merits. Just because Arizona Cardinals running back Jonathan Dwyer and Carolina Panthers defensive end Greg Hardy were each arrested for domestic abuse earlier this week, each National Football League football hero will be given an independent hearing and trial, if need be, ... (click for more)

Hill, Wolfe Help Central Hand East Ridge First 6-AA Loss

On Tuesday, Central dropped its first District 6-AA volleyball match to Hixson. Two days later the Lady Purple Pounders did the same to East Ridge. With Rebekah Hill and Skyler Wolfe leading the rebound from Tuesday’s loss, Central swept East Ridge 3-0 and remained in the hunt for their second straight district championship. Set scores were 25-14, 25-16, 25-22. “The ... (click for more)

Lee Davis A Successful Runner Among Other Things

Lee Davis grew up in Philadelphia, went to college at Elizabethton College in Central Pennsylvania and graduated from law school at Boston University. He also became a pretty good runner during that time. Davis is a high-profile attorney in Chattanooga who does something physical every day.   He doesn’t train like he once did and he doesn’t even like to talk about ... (click for more)