Five climate and energy-conservation groups today sued the Tennessee Valley Authority for imposing discriminatory electricity rates that discourage homeowners and businesses from investing in renewable energy and energy efficiency.
The lawsuit, filed in the Northern District of Alabama, says the utility’s new fixed “grid-access charge” will, for the first time, require its customers to pay a mandatory electricity fee regardless of their energy usage.
Such fixed fees make rooftop solar less cost-effective.
Officials said, "The utility is also reducing electricity rates for large businesses. This move encourages companies to continue relying on its fossil fuel-powered energy rather than investing in distributed solar. The new rates also cut costs for the biggest energy users, discouraging efficiency.
"The utility’s board of directors, with a majority appointed by President Trump, has now given final approval to all of these rate changes."
“TVA’s outrageous new rates penalize people working hard to save energy and money while rewarding big companies that run up huge electricity bills,” said Howard Crystal, a senior attorney with the Center for Biological Diversity. “This perverse plan forces customers to prop up dirty, outmoded power plants instead of transitioning to renewable power. We desperately need clean-energy progress and efficiency investments to protect our communities and the environment.”
As detailed in the lawsuit, he said the utility "has failed to disclose the environmental impacts of these rate changes, in violation of federal law. The new rates will inevitably result in more energy generated by power plants that run on fossil fuels — creating unnecessary pollution and worsening the climate crisis. TVA must address the damage the new rates will cause in an environmental impact statement."
“TVA continues to lose its leadership position on renewable energy and energy efficiency. TVA’s rate changes are about one thing and one thing only,” said Daniel Tait, technical director for Energy Alabama. “Killing energy efficiency and renewable energy to protect its monopoly stranglehold on regular folks.”
“Clean, renewable energy like rooftop solar represents a tremendous opportunity in Alabama to create new jobs, generate homegrown energy, save customers and businesses money, and reduce impacts on human health,” said Gasp Executive Director Michael Hansen. “TVA’s so-called ‘grid access charge’ will disincentivize solar energy and all its benefits.”
“The TVA’s notoriously high bills already force working families and low-income households to choose between feeding their families and keeping the lights on,” said Damon Moglen, senior strategic advisor with Friends of the Earth. “Now customers are being forced to bolster the highly polluting fossil fuel industry by paying even more for their electric bills. We must end the TVA’s disastrous and unfair practices and transition to a clean energy system that is accessible and affordable to everyone.”
“TVA's move to increase fixed fees on monthly bills is intended to undercut customers’ ability to control energy costs through energy efficiency and solar investments,” said Dr. Stephen A. Smith, executive director of the Southern Alliance for Clean Energy. “TVA is trying to mislead people by talking about their ‘low rates’ but energy consumers don’t pay rates, they pay bills, which are calculated as a rate times consumption plus fixed fees. Customers in the TVA service territory have some of the highest bills in the United States. The devious ‘grid access charge’ will only accelerate the high-bills problem by increasing fixed fees and stifling efforts to control electric consumption by families and small businesses, leading to higher costs and more pollution. This legal action seeks to educate people about what is happening to them each and every month.”
TVA is a federally owned corporation and the nation’s largest public power provider. It generates electricity for more than 9 million customers in Tennessee, northern Alabama, northeastern Mississippi, southwestern Kentucky, and portions of northern Georgia, western North Carolina and southwestern Virginia.