"As a electricity distributor in this area, Pennyrile Electric's primary goal is to serve all of our customers by building economic prosperity in this community and by providing affordable, reliable electric power," said Eston Glover, manager, Pennyrile Electric.
"And as the voice for our customers, we know that TVA has to meet federal environmental standards. However, TVA's wholesale rates are already the highest in Kentucky. We believe it is our duty to help devise a more equitable cost-sharing plan for meeting the new federal environmental standards than what is currently being proposed by TVA
"Basically, we do not believe TVA has justified the amount of the proposal increase."
Scheduled to go into effect in October, the current TVA plan will increase rates for all Pennyrile Electric residential, commercial and non-manufacturing companies, while reducing rates for a small class of manufacturing industries, TVA's plan would ultimately provide a subsidy of $90 million annually (almost $1 billion over 10 years) for those receiving the electrical rate reduction.
"Although we share TVA's commitment to preserving the environment, we believe the responsibility for generating the revenue necessary to meet these federal standards should be shared by all customers," said Glover. "Under the current proposed plan 2 percent reduction would be given to only a small number of large manufacturing customers.
"We believe such a reduction would negatively impact the economy in the communities we serve because many of the commercial customers and small industries -- the ones that are achieving job growth-- would be penalized through a rate increase."
"TVA wants a permanent rate increase while we believe that any rate increase to add environmental protection equipment at TVA plants, should go away after the equipment is paid for." said Glover.
TVPPA and its distributors recently issued a counter proposal to the TVA board of directors that was rejected. Included in the plan was a temporary surcharge added to all wholesale customer bills that would be terminated once sufficient funds had been acquired to pay the environmental compliance. The distributors also proposed continuing efforts already in place to offer targeted credits and incentives to promote existing business growth, attract new industry, and fuel local economies throughout the seven-state service area.
Over the next several weeks, TVPPA leaders will testify before regional congressional representatives about this issue and will promote an alternate rate plan.
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