The TVA Board on Thursday approved a 5.25 percent base rate increase that will take effect Oct. 1, 2024.
Officials said it was "to fund ongoing construction and energy development."
An average residential bill in FY23 was about $138, so this increase will translate to about an additional $4.35 each month.
“We recognize that people don’t pay rates, they pay bills, and that matters,” said Jeff Lyash, TVA president and CEO. “We know this is a kitchen table issue for many families across our region. At TVA, we don’t like price increases any more than you do, and that’s why we continually work to reduce expenses by hundreds of millions of dollars each year. We have done everything possible to absorb costs as we invest in the reliability of our existing plants, construct new generation to keep up with growth and maximize solar to produce more carbon-free energy.”
In August 2023, the TVA Board of Directors approved a 4.5 percent base rate increase for FY24. These funds helped support the completion of Paradise and move forward with construction of additional generating resources at Cumberland, Kingston, Johnsonville, and Shawnee, officials said.
Mr. Lyash said that because of TVA’s diverse generation resources, reduced fuel costs have kept residential rates lower than 75 percent of top 100 U.S. utilities and through the first nine months of this fiscal year power rates were three percent lower than the same period last year despite the rate increase.
He said, “Through our employees’ efforts, innovation and diverse generation TVA continues to have some of the lowest electric rates in the nation. We are keeping power affordable by investing in energy efficiency to lower consumers’ power bills, while generating electricity at the right time, with the cleanest fuel, at the lowest possible cost.”
Also, the TVA Board on Thursday approved $150 million in additional advanced nuclear funding to support continued design work and TVA’s development of potential small modular reactors (SMRs) at its Clinch River site near Oak Ridge.
The Board, which approved an initial $200 million at its February 2022 board meeting, has now approved $350 million total for the project. Officials said, "At nearly 60 percent carbon-free, this investment to build clean generation accelerates TVA’s transition to clean energy to power the region’s growing population and economy."
“We believe advanced nuclear technologies will play a critical role in our region and nation’s drive toward a clean energy future,” said Mr. Lyash. “Today’s Board decision demonstrates TVA’s commitment to continue leading in this effort.
“Small modular reactors are an energy innovation technology that America must dominate – for our energy security, which is really our national security.”
According to TVA, the region’s population is growing three times faster than the national average, and in 2023, GDP in TVA’s service territory grew 0.5 percent faster than the national average.
To address the need for more electricity, TVA is investing nearly $16 billion through FY27 to build new generation and infrastructure and enhance the reliability of existing assets.
Officials said, "The agency is building ~3,500 megawatts and has made great progress by completing 1,400 megawatts and securing 800 megawatts of solar this year."
Mr. Lyash said, “As energy demand grows due to greater reliance on electricity, new residents moving to this region and new economic investment, we need a diverse fleet that leverages multiple generation sources. The answer to keeping our energy secure, affordable and reliable is a well-rounded portfolio that is increasingly carbon-free and substantially expandable – and TVA’s portfolio is one of the most diverse in the nation."