Federal Utility OKs $10.4B Budget, 1.5 Percent Rate Increase

KNOXVILLE, Tenn. (AP) – A federal utility says it has included a 1.5 percent rate increase in its budget that takes effect in October.

The Tennessee Valley Authority says its board approved a $10.4 billion budget and the rate increase Wednesday. The budget keeps operating and maintenance spending flat.

TVA says the rate increase is modest and falls below the rate of inflation, amounting to about $1.50 more monthly for the average resident using 1,000 kilowatt-hours per month.

The board also approved $500 million in one-time money for TVA’s retirement system, which is in addition to the $300 million annual contribution.

TVA President and CEO Bill Johnson said a major focus is attending to long-term liabilities, especially debt and pension-related.

TVA serves more than 9 million people in parts of seven southeastern states.

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