TVA Rates Increased in October
Volunteer Energy Cooperative (VEC) strives each year to keep costs down to a minimum for our members. Residential electricity rates are a part of life that we all pay. We all use electricity, some more than others, and we budget specific amounts from our income to pay for this necessity. When the price increases, VEC and our residential customers, must adjust our budgets. For some of our members on fixed incomes, this means taking money out of other areas to pay for electricity. On October 1st, electric rates were raised once again by Tennessee Valley Authority (TVA). This will make the fifth year in a row and half way to a 10-year rate increase plan proposed by TVA.
The rate increase will make VEC’s residential customer’s electric rates increase 1.6%. This will not be felt during the milder months of the fall, but once the cold winter months hit the increase will be painful. This increase is something Rody Blevins, VEC’s President and CEO, fought against. More than 20 times over the last year he spoke with TVA and other Local Power Companies about the continued rate increase and how it will affect our residential customers.
In addition to speaking against the rate increase to TVA, VEC is considering a change to the layout of the bill format to help our member’s understand the TVA rate increase. With a change in the bill format we will be able to show our members the cost per kWh that goes to TVA and the portion VEC uses to maintain the local electric system.
This increase is only the halfway point of TVA’s 10-year rate increase plan. If VEC and our statewide association are unsuccessful achieving a better resolution with TVA on continued rate increases, we will look to you our membership to help us get a message to TVA.