TVA Pushes Through Surprise Rate Increase for Customers

Public Was Not Given Notice of Additional 5.25% on Bills
Contact

Grace Nolan grace@team-arc.com

Melissa Williams, melissa.williams@sierraclub.org 

Florence, Ala. – The Tennessee Valley Authority leadership recently announced critical details about the utility’s plans to increase rates, raising costs for millions of customers across TVA’s hundreds of local power companies. 

During a board meeting on Aug. 23, the utility announced its second rate increase this year, adding another 5.25% in increased electricity costs to consumer bills, in part to subsidize unproven small modular nuclear reactor technology that the utility is banking on rather than increasing investment in renewable energy and necessary transmission infrastructure. 

The increase was a surprise, with no materials released or public input in the lead up to the announcement. The utility is also doubling down on generation fueling the climate crisis, spending money to weatherize failing gas plants and undertaking the nation’s most expansive buildout of gas infrastructure this decade. The rate increase will take effect in just a few months time.

In response, Bonnie Swinford, Campaign Organizing Strategist of the Sierra Club, released the following statement: 

“TVA is moving in the wrong direction and needlessly raising costs for consumers to pay for unproven nuclear technology and updates to unreliable methane gas infrastructure when they could be investing in technology that lowers rates and increases resilience in extreme weather. Last week, without independent analysis or public input, TVA blindsided customers with another large cost increase, putting millions of families and businesses across the region under more financial pressure at a time when we’re all feeling economically strained. TVA needs to take a step back and rethink this plan by seeking public input and expert analysis before wasting billions of dollars that communities can’t afford. Instead of doubling down on dangerous methane gas and untested small modular reactors, TVA should be investing in renewable energy, storage, and transmission infrastructure that benefit ratepayers, while building a more resilient and reliable system.”

About the Sierra Club

The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.