VEC to Reduce Rates October 1
On Wednesday, the Volunteer Energy Cooperative (VEC) board of directors voted to reduce all rate classes by approximately 1.7%. The rate reduction starts on October 1, 2020, and ends September 30, 2021.
The rate reduction was made possible by a wholesale credit from the TVA to the Tennessee Valley local power companies (LPCs). Although TVA did not specify how the LPC’s should use the credit, the VEC board and management chose to use the one-year credit to reduce retail rates.
VEC President and CEO Rody Blevins said, “Using this wholesale credit to help cooperative members during a pandemic is the right thing to do. Putting money back into our consumer member’s pockets reflects the principles of cooperatives.” He went on to say, “Although the credit is not a wholesale rate reduction, this action is one small step toward rate competitiveness for TVA. We encourage the TVA board to consider additional reductions in TVA’s wholesale rates in the future.”