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Friday, January 21, 2022
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TVA hikes electric rates by 20%

On the heels of fluctuations in gas prices and a surge in the cost of groceries and most household goods delivered to area stores comes another hit: a hike in the price of electricity. Both CDE Lightband and CEMC rates will jump 20% following a decision by the Tennessee Valley Authority on Wednesday.

TVA directors approved a 17% fuel cost adjustment and an additional power base rate increase of 3%. For the average household using 1,320 kilowatt hours, that translates to an additional $15 a month. The rates will show up on customers’ October billing cycle. This increase is the largest increase since 1974.

In a statement to the press, TVA President and CEO Tom Kilgore cited the weather, specifically a lack of rain and a three year drought in Tennessee and the rest of TVA’s seven state region as partly responsible for the increase. Kilgore said the drought has forced TVA to rely more heavily on coal and natural gas, since hydrogeneration has been impacted by the lack of rain.

“We recognize that the increased costs TVA is experiencing are also driving up costs for the families and businesses we serve…we have no alternative for paying for fuel.” –TVA President and CEO Tom Kilgore

The rate hike will not generate profit for either CDE Lightband or CEMC, since the increase will be funneled back to TVA to cover increased costs.

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1 COMMENT

  1. I think the main problem is the leadership at TVA have forgotten they are public servants and feel they should be able to milk the rate payers just as much as the private industry does…

    TVA said each executive is paid less than executives in similar positions with utilities in the private sector.

    They paid record bonuses to their executives in 2003, 2004, 2006, and 2007. Bonuses were down in 2005 yet still exceeded 50 million with the vast majority going to the top executives.

    Lets take a look at their pay. President Bush is paid $400,000 a year and I am quite sure the his job is more challenging than being the head of the Tennessee Valley Authority. Yet TVA President and CEO Tom Kilgore in 2007 earned a total compensation of $1.84 million (4.6 times President Bush) which was up from $1.59 million (3.975 times President Bush) in 2006. In 2008 Kilgore is set to make $2.7 million (6.75 times President Bush) under a compensation plan approved in 2007 by TVA’s board.

    In 2006 the top 4 executives were paid over $5.7 Million (including bonuses and other compensation) an average of 1.4 Million each…

    Do you see something wrong here?

    If these gentlemen are not happy being public servants serving the public, and as a consequence making less than executives in the for-profit power industry. Let them go back to private enterprise. Oh and make sure you cancel their very generous severance packages on their way to the door.

    20% increase indeed.

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