News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
The TVA’s base energy rate is increasing at the start of October to provide funding for their upcoming expansion projects.
Cookeville Energy Department Director Carl Haney said the TVA is looking to spend some $16 billion on various projects through the 2027 fiscal year. Haney said they are increasing their base rate by five and a quarter percent to afford the work they have planned.
“And that’s to build new generation, upgrade their existing infrastructure, just to keep up with the growth in the TVA area,” Haney said. “Obviously with that there’s a lot of growth there, you know, and you got to constantly build new generation and keep up with that.”
Haney said the city’s customers will not feel the whole rate increase as the average electric bill will go up by around $3.30. Haney said Cookeville is part of an agreement that prevents the TVA from raising its base rate again until 2029.
“If somebody’s using higher than the average, then that would affect them more,” Haney said. “If they’re using less, it would affect them less, obviously. But it would grow with their usage.”
Haney said the cost of the increase will not have much of an impact on the city’s budget line as it gets passed on their customers.
“When they change that base rate like that, it also changes our retail rates automatically,” Haney said.
