Residential customers will see an increase of about 1.7 percent to their monthly electric bill beginning Oct. 1.
VEC will not receive any additional revenue from the increase.
“Our board of directors declined to add a VEC rate increase,” said VEC president/CEO Rody Blevins. “This is strictly a pass-through.”
TVA President and CEO Bill Johnson said the TVA increase, the first in two years, is smaller than the growth in inflation since TVA’s late rate increase.
“While we never like to raise rates, this small adjustment is necessary to meet our 2014 revenue requirements and operate our system safely and reliably,” Johnson said.
“We will also make critical capital investments to keep reliability high and meet environmental standards and contribute to paying down debt.
Johnson said TVA is executing a plan to reduce operations and maintenance costs by $500 million by 2015. He said nearly $150 million in reductions have been achieved during this fiscal year with plans for an additional $150 million by the end of 2014 and another $200 million in 2015.
“We’re taking action to improve TVA’s operations and financial health so it continues to serve the region for years to come,” Johnson said.
Volunteer Energy Cooperative sends about 80 cents of every dollar collected to TVA to pay for electricity.