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

Here is the latest jail booking report from Hamilton County: AKHTAB, MALACHI SHAHADA  102 WAYSIDE DR FORT OGLETHORPE, 30742  Age at Arrest: 24 years old Arresting Agency: Hamilton County FUGITIVE (CATOOSA COUNTY GA) ---- ANDREWS, TRAMESHA LASHON  3921 MARIGO DRIVE CHATTANOOGA, 37421  Age at Arrest: 24 years old Arresting Agency: Red Bank ... (click for more)

Stone Charged In Attack On Wife, Who Is Top Aide To Mayor

Robert F. "Bobby" Stone has been charged in an attack on his wife, Lacie Stone, a top aide to Mayor Andy Berke. Stone, 54, is charged with domestic assault and vandalism. In the incident on Friday, police said Ms. Stone called a friend at the police department, saying "her husband was going to kill her." She said they got into a verbal argument that turned physical in a ... (click for more)

Late-Night Harassment By The Signal Mountain Police - And Response (7)

I am writing about the misconduct of the Signal Mountain Police Department. This is a repetitive civil rights problem, systemic within their department, with no hint of remorse or regret or a notion to change, though they have been confronted numerous times.   I live on Signal Mountain. In the last few months, I have been pulled over three times while I was driving three ... (click for more)

Roy Exum: Hot Rod’s Catfish Dinner

It could well be the best part of playing a prank is in the delicious moments until your “fish” takes the hook. So yesterday afternoon, as I tried repeatedly to talk to a man I haven’t spoken to in 27 years, rather than leave my name I popped off the Happy Birthday song in a snappy, loud way and then ended it with a simple, “Call me,” adding my number. John “Hot Rod” Talley spent ... (click for more)

Germany's Sebastian Kienle Wins Ironman 70.3 Race

It’s hard to not be impressed with the fitness level of folks who commit themselves to training and participating in Ironman-distance triathlons and that was surely the case in downtown Chattanooga Sunday morning. There are three words to describe these folks and that’s fit, fast and friendly.  And most of them cross the finish line with a smile on their face and a spring ... (click for more)

Spring Fling State Soccer Brackets Set

Notre Dame and McCallie are the only area teams to compete in this week's Spring Fling Soccer competitions in Murfreesboro.   In Class A/AA, Notre Dame will play Tuesday at 6:30 in the quarterfinals.  The will face off with CAK. Winners will advance to the semifinals on Wednesday.  The Class A/AA state championship game is set for Friday at 4 p.m.   Notre ... (click for more)