Analysts say low rankings represent the potential for utilities to take advantage of ‘abundant, low-cost’ resources.

Something doesn’t smell right. Last fall, the Tennessee Valley Authority raised utility rates by 5.75%, equivalent to $500 million in expected revenue. Then in late November they approved $276 million in bonuses to their employees.

This rate increase was decided on Dec. 5, 2023 when the Memphis City Council approved a 12% increase over the next three years. The changes in MLGW budget would account for raises for employees and the expected addition of about 36 employees.

The Tennessean's letters reflect the views of the authors and add to public discourse. At issue today: Tennessee Valley Authority (TVA) rate hikes.

The Tennessee Valley Authority (TVA) is promoting its Flexibility Program, which allows local power companies to generate up to 5% of their energy from local sources, such as solar power. TVA claims this will encourage cleaner energy options and more control for local utilities. As of now, 153 of TVA’s 153 power distributors have agreed to participate in the program.

In August of 2024 TVA approved a 5.25% base rate increase, which will result in a higher utility bill for Tennesseans starting in October. The average bill will likely go up about $4.35/month. The TVA stated that the reason for this rate increase is due to a need to fund construction and energy development.

KUB has marked up TVA power rates to cover its operational costs. This move aims to fund expensive projects and ongoing infrastructure improvements, resulting in higher electricity bills for customers.

The TVA board still lacks representation from Memphis, even though the city is the largest customer in the utility’s service area. This absence has raised concerns about whether Memphis’ interests are adequately considered in TVA’s decision-making.