TECA has developed the following news story for member systems to customize and use.
On Aug. 8, the Tennessee Valley Authority board of directors approved a wholesale rate increase that will take effect on Oct. 1. The average Cooperative Name residential member (1500kWh/month) will see a $1.60 increase on their monthly electric bill.
TVA is raising electric rates to meet the power requirements in the Valley, make nuclear safety modifications following the earthquake in Japan, improve cyber-security and continue investing in clean-air initiatives and energy efficiency.
“These strategic investments are key to providing reliable, low-cost electricity now and into the future while being responsible, good stewards of Tennessee Valley resources,” said Tom Kilgore, TVA president and CEO. “To achieve our vision of being one of the nation’s leading providers of low-cost and cleaner energy by 2020, TVA must continue to reduce air emissions, offer a balanced power mix and encourage energy efficiency.”
Wholesale power is the largest expense for Cooperative Name. “On average, only percentage percent of Co-op abbreviation’s annual revenue is used to maintain the poles, wires, and substations and pay the employees that deliver power to our members. The other percentage percent goes to TVA,” says Manager’s Name, title. “Even the smallest change in TVA’s rates impacts us in a big way.” Cooperative Name paid TVA over wholesale power cost for wholesale power in 2010.
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