A recent TVA rate increase means local power bills will be going up.
The TVA Board recently approved a 4.5 percent effective rate increase. The increase will lead to Cookeville residents paying an average of $3.50 more on a typical residential bill each month.
Cookeville Electric Department Director Carl Haney said that the rate increase is to keep up with the growing energy demands of the state.
“Due to just growth in the region and the need to build and invest more in the power part of it, the generation side,” Haney said. “You know TVA’s planning on investing about $15 billion over the next three years so that’s sort of what brought this on.”
Haney said that TVA supplies Cookeville with all its electricity. Haney said that the rates passed on to residents are generated by TVA in order to keep costs at Cookeville Electric consistent.
“That is our agreement that we have with the TVA that they will provide us for that,” Haney said. “There’s really not a process that we have to say ‘Hey we need this much and you make sure that you keep us supplied with it.’ That is our agreement with them, that’s what they’re there for, it’s to provide us with whatever we need.”
Haney said TVA has looked at multiple forms of power generation, including solar power. Haney said that despite the rate increase, TVA still remains the best option for Cookeville regarding all of its power needs.
“It works out great. TVA’s rates are some of the lowest in the nation, especially in the Southeast,” Haney said. “They’re very reliable so it’s been a great relationship for Cookeville.