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Customer: TVA rates 'worse than ridiculous'

NORTH MISSISSIPPI — Some Tennessee Valley Authority industrial customers are grumbling about planned changes and rate increases that they contend have been “worse than ridiculous.”

Paul Holland, director of the Southeastern Power Users Group that represents about 72 TVA industrial customers, told The Knoxville (Tenn.) News Sentinel that planned changes will further drive up rates and steer companies away.

TVA President and CEO Tom Kilgore told the newspaper in response to the complaints in December that industrial rates have risen over the years but are still relatively low. He said TVA’s “industrial rates have changed a lot, but I think, comparatively speaking, we’re still not uncompetitive” with other areas.

TVA is increasing its wholesale electric rate by 1 percent and in April plans to change its wholesale rate structure, which could encourage companies to switch power use to periods of lower demand.

Holland said his group calculates that TVA industrial rates have risen 17 percent over six years, “which is worse than ridiculous.”

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One comment

  1. William Roberson

    This reminds me: For more than 3 years I have tried to learn if it is True or Not True: TVA STOPPED using water to generate electricity! Why? I was told: ” The turbines worn out, so they stopped making electricity”. IS THIS TRUE? …I am still not sure..*:25PM Wed. 5 Jan.2011

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