KNOXVILLE, Tenn. ― 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.  Less than the economy’s modest growth in inflation since TVA’s last rate increase in 2011, the rate adjustment will add about $1.50 to the monthly power bill of a residential consumer using 1,000 kilowatt-hours of electricity.

“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. 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,” Johnson 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,” 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.

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.

Additional Board Actions

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, 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.

NASHVILLE – Krista Herrod of Hendersonville joined the Tennessee Electric Cooperative Association Monday, Aug. 19, as an administrative assistant. A 2010 graduate of Middle Tennessee State University in Murfreesboro with a degree in nutrition and food science, Herrod previously worked as a receptionist at Vanderbilt University Medical Center. She grew up in Hendersonville and graduated from Beech High School. In her spare time, Herrod enjoys running, traveling and scrapbooking.

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Somerville, Tenn.—A renewable energy survey recognizes the customers of Chickasaw Electric Cooperative as one of the top consumers of solar-generated power in the nation. According the report from the Solar Electric Power Association, CEC generates an average of 216.7 watts of solar energy per customer, the fifth most of any utility in the nation.

This is the first time Chickasaw EC has ranked on the survey. The recognition follows the installation of the West Tennessee Solar Farm in early 2012, which generates 5 megawatts of solar power brought onto the TVA power grid through Chickasaw EC.

The West Tennessee Solar Farm, located in Haywood County, is a cooperative program between the University of Tennessee, Chickasaw EC, TVA and others. It adds about five megawatts of solar power onto the TVA grid, which is enough to power 500 homes. The power harnessed at the solar farm enters the TVA grid through Chickasaw EC lines. The West Tennessee Solar Farm is the largest single source of solar power in the TVA system.

John Collins, General Manager for Chickasaw EC accepted a plaque to mark the occasion at the utility’s August 6 annual meeting in Somerville.

“It is a true honor to be recognized by SEPA for our efforts to add solar power to the TVA system,” Collins said. “The West Tennessee Solar Farm is a tremendous asset to our community and to know it is one of the top per capita generating systems in the country is a feather in our cap.”

TVA currently owns or purchases more than 6,315 megawatts of renewable generation capacity, including 77 megawatts of solar energy.

The 37th Annual Chapel Hill Lions Club Super Pull of the South has held on Friday and Saturday night, Aug. 19 and 20, drawing some of the biggest crowds in the history of the event.

The weather was beautiful both nights and the track was in perfect shape as pullers came from all over the country to take part in one of the premier events of the National Tractor Pull Association (NTPA) circuit.

Touchstone Energy Cooperatives were a proud sponsor of the event, and the balloon team was on site for tethered rides both nights. A few lucky co-op staffers and directors had an opportunity to fly with the team.

 

SELMER, Tenn. — Strata Solar is working with the Tennessee Valley Authority and Pickwick Electric Cooperative to develop the two largest solar energy installations in the Tennessee Valley near Selmer in McNairy County, Tenn.

Strata Solar will build and maintain two 20-megawatt solar farms interconnected to the TVA power system through Pickwick Electric Cooperative. TVA will buy the electricity at market rates under TVA’s Renewable Standard Offer program.

Together, the two installations could generate enough electricity in one year to power 4,000 average homes in the Tennessee Valley.

“This project will add a tremendous amount of solar power to our already strong renewable lineup,” said Patty West, TVA director of Renewable Energy Programs. “Because TVA is purchasing the output at market rates, the electricity will also be among our cheapest solar power, moving us toward our vision of being a national leader in providing low-cost and cleaner energy.”

Current plans call for the solar farms to have more than 160,000 solar panels installed on over 300 acres. Each farm will be four times bigger than the largest current solar installation on the TVA system – the University of Tennessee’s 5-megawatt West Tennessee Solar Farm that opened in 2012 in Haywood County, Tenn.

“We are thrilled to be working with TVA & PEC on these pioneering solar projects,” said Markus Wilhelm, founder and CEO of Strata Solar. “The town of Selmer has been extremely welcoming to Strata and very helpful throughout the project planning. We are looking forward to bringing a wealth of new jobs and an abundance of renewable energy to such a fine city.”

Karl Dudley, president of Pickwick Electric, said, “We are proud to be an integral part of TVA’s goal to build a stronger renewable portfolio. This project will also spur economic development in our area, and that is always a good thing.”

The Strata Solar projects have been accepted into TVA’s Renewable Standard Offer program, pending an environmental review and interconnection studies that must be completed before construction begins. TVA is accepting public comments on the environmental review at www.tva.com/environment/reports/strata/ through Aug. 13, 2013.

TVA currently owns or purchases more than 6,400 megawatts of renewable generation, including 77 megawatts of solar energy. It also supports the renewable energy industry through its Green Power Switch, Green Power Providers, and Solar Solutions Initiatives programs.

Strata Solar LLC, based in Chapel Hill, N.C., is an integrated solar energy company that owns and operates commercial and utility scale solar energy systems. With over 150 megawatts commissioned and a gigawatt under development, Strata is one of the nation’s largest solar integrators. For more information, please visit www.StrataSolar.com.

 

Each month we share news and updates, promotions and retirements that we receive from our co-ops. Below are updates from August.

Sequachee Valley EC

Sequachee Valley EC’s “Watts Up” Relay for Life team raised more than $11,000 during the Marion County Relay for Life. The SVEC team is consistently one of the top teams for the most money raised in Marion County and last year was the #2 non-corporate team in the entire Chattanooga area. Team members were Cathie Brown, Cheryl Higgins, Chris Cooper, Tiffany Burns, Joan Davis, Bryan Melton, Vickie Paris, Jane Middleton, Lisa Holtcamp, Beth Duggar and Shelby Potterfield.

Michael-GreerMichael Greer, a truck driver for the Marion County district, retires on August 12th after 34 years of service. Michael plans to do a lot of fishing and spending time with his 4 grandchildren. Although he will be missed, SVEC congratulates Michael and wish him and his family much happiness.

 

 

Electric Camp JarvisJarvis Wooten, district operations manager for Marion County and Cathy Black, communication specialist, took a group of students to 4-H electric camp in Knoxville recently.

 

 

 

crew-in-VA-6.14.13A crew from SVEC left before sunrise on June 14th to help Southside EMC in Virginia after storms left thousands of their members without power. Joey Roberts, Anthony Gilbert, Blane Stewart and Billy Akin assisted Southside EMC with power restoration.

 

 

Pickwick EC

Pickwick Electric Cooperative’s hot line bucket truck foreman Eddy Warren will retire Aug. 30 following a 39-year career with the co-op.

Cumberland EMC

Director changes:

  • Mr. Charles Hancock replaces Mr. Jerry Peacher, who resigned due to health issues.
  • Mr. Edward Oliver replaces Mr. Carrol Poole, who resigned due to health issues.