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.

 


Latest Hamilton County Jail Booking Report - And Mug Shots

Here is the latest jail booking report from Hamilton County: ALLEN, JERARD DEWAYNE     918 OAK STREET CHATTANOOGA, 37403     27     Hamilton County          VIOLATION OF PROBATION (POSSESSION OF CONTROLLED S ANDERSON, JOSEPH HEATH     5947 CONGRESS LANE HARRISON, 37341    ... (click for more)

Preston Custer, 24, Arrested On Multiple Burglary Charges In Cleveland

Cleveland Police Department patrol units responded to a burglary at Bowman Hills Seventh-day Adventist Church at 300 Westview Drive NE in Cleveland on Monday morning. The church was not only burglarized, but sustained an excessive amount of vandalism, well over $10,000. Criminal Investigations detectives Steve Ross, Matt Jenkins and Lieutenant Steve Tyson responded to the church ... (click for more)

What's Wrong With The City Recycle Program? - And Response (2)

Being new to recycling, I have lots to learn.  I rely on 311 and the attendants at the neighborhood collection centers to assist in building my knowledge.   Recently, I had an experience that makes me reconsidered my recycling efforts.  I loaded up my car, called 311 to verify what I could take, only to be blocked by the attendant at my neighborhood collection ... (click for more)

Roy Exum: That Billboard & Much More

Now that early voting has started and our strawberries have hopefully survived this last blush of winter, allow me to catch up on some things but, first, here’s a letter from a concerned reader I feel compelled to share: “There is something I have noticed throughout Brainerd, East Brainerd, Dayton, etc. A billboard has been put up, I believe by the Health Department of Hamilton ... (click for more)

Cuonzo Martin Leaves Tennessee For Job At California

Tennessee basketball coach Cuonzo Martin apparently took his name out of the coaching search at Marquette so he could put it in a hat at the University of California at Berkeley. On Tuesday, Martin broke ties with the Volunteers and accepted the head coaching job with the Bears. Tennessee athletic director Dave Hart admitted Martin’s move surprised him. “Not from my perspective,” ... (click for more)

Mocs Win Women's Southern Conference Championship

The Chattanooga Mocs are your Southern Conference Women’s Golf Champions. That’s five straight team titles and sophomore Emily McLennan (Queensland, Australia) made it the fourth consecutive sweep winning medalist honors. McLennan was solid shooting 222 for her 54 holes on a tough week for scoring. She won by four strokes over Furman’s Taylor Totland and was seven clear of ... (click for more)