CHATTANOOGA – Today the TVA board of directors approved a 4.5 percent base rate increase effective on Oct. 1, 2023. This, combined with the end of the 2.5 percent Pandemic Relief Credit set to expire on the same date, constitutes a 7 percent increase in the amount TVA charges local utilities for wholesale power. On average, 75 percent of an electric cooperative’s revenue goes to TVA for the purchase of wholesale power.
In response to today’s board action, Mike Knotts, CEO of the Tennessee Electric Cooperative Association made the following statement.
“Tennessee’s electric co-ops are concerned about the impact this rate increase will have on rural and suburban Tennessee. While we understand and support TVA’s need to invest in additional generation to ensure the lights stay on, rate actions of this magnitude will have real impacts on the families and businesses we serve. Co-ops will continue to work with TVA to ensure that Tennesseans continue to enjoy reliable and affordable energy.”