The TVA board on Thursday approved a 1.5 percent retail rate increase estimated to cost the typical residential customer $1.50 more per month on electric bills, reports the News Sentinel.
Meeting at TVA headquarters in Knoxville, the board also approved a $10.37 billion budget — $330 million less than last year.
“This budget is in keeping with TVA’s long-term financial plan, which has helped us manage our business to a lower cost structure as businesses and consumers use less energy,” TVA President and CEO Bill Johnson said in a statement. “It reflects a modest, incremental rate increase that ensures we make necessary investments in the power system and manage down debt.”
TVA’s rate increases are applied to its power distributor customers, such as the Knoxville Utilities Board, which usually pass the increases along to their customers. The $10.37 billion budget compares to a $10.7 billion budget approved in August 2015. That budget also included a 1.5 percent rate increase, said to be driven by capital needs such as completing the Watts Bar Unit 2 nuclear reactor, and others.