The TVA increase of 9.95 percent to the 158 distributors will go into effect April 1 and follows a 7.55 percent increase on Oct. 1, 2005. TVA attributes the increase to the higher cost of off-system power purchases and the cost of coal and natural gas used to generate electricity.
“We at the Electric Plant Board feel that a rate increase of this magnitude coming on the heels of the October increase will have a dire impact on our customers at this time,” says Superintendent Larry Wilcutt on behalf of the board.
To help lessen the impact the EPB Board has approved a "retail rate credit” for its residential and general service customers. The credit will go in to effect on April 1, the same time as the pass-through of the TVA wholesale rate increase. The Board has committed to keeping the credit in effect until October 2006.
With the retail rate credit, a residential customer with average usage will see an increase in their monthly bill of $2.75 instead of $5.12, an increase of 3.85% as opposed to 7.17% without the credit. General Service customers will see increases- from 3.50 percent for small users to 5.10 percent for larger users with the credit, instead of a 6.65 percent to 9.05 percent increase respectively without the credit, according to Wilcutt.
At the same time TVA approved the April rate increase it approved the trial use of a Power Cost Adjustment factor with the intent of implementing it in October 2006. From now until then the Board will be reviewing any proposed TVA rate adjustments and the impact of the credit on the EPB financial condition to determine whether the retail rate credit can be extended.
“The EPB is committed to keeping its retail rates as low as practical and competitive with the surrounding utilities,” Wilcutt says. “We are pleased to be able to absorb a portion of this latest increase and to soften the impact on our customers.”
Joe Carrico is chairman of the EPB and Bill Kraeling, vice chairman. Other members are Danny Coffey, Lanny McPherson and Ken Brown.
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