NASHVILLE, Tenn. (WZTV) — “This is really going to hit our low-income and disadvantaged communities,” says one Cheatham County resident.
A 5.25% rate increase from the Tennessee Valley Authority goes into effect in October, which means you’ll notice it on your November electric bill.
TVA estimates it will cost the average homeowner a little less than $5 a month. The utility says it needs the money to finance new power plants to meet demand.
This is the second TVA tariff increase in two years with a total of almost 10%.
Some of the growth TVA is hoping to fund is in Cheatham County. The company owns 180 acres near Ashland City where it plans to build a new natural gas power plant. People who own homes nearby aren’t thrilled. But TVA says projects like this are critical.
Scott Brooks says: “We are committing $16 billion over three years to new power generation and transmission upgrades, and we hope that what we have done over the last two years will at least get us there.”
TVA spokesman Scott Brooks says that until last year, they had not raised prices in four years.
Tracy O’Neill, a homeowner in Cheatham Co., says, “They were very strategic about it.”
Tracy O’Neill lives near the TVA site in Cheatham County. She says TVA keeps its price increases under 10 percent because when prices go higher, a provision goes into effect that allows local electric companies to renegotiate their contracts. O’Neill says when you factor in all other price increases, 10 percent more on the electric bill adds up, especially for people on fixed incomes.
O’Neill says, “They have to pay a copayment for their medication. It’s $4.25, but that’s the amount their electric bill goes up. So now they have to choose between their medication and their electric bill.”
The rate increase will take effect Oct. 1. If you are having trouble paying your electric bill, TVA says contact your local utility company and ask about assistance programs.
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