TVA Says New Pricing Structure Aims At Eliminating Sticker Shock Brought By Extreme Temps

Tuesday, February 13, 2018

TVA said it is moving to a new pricing system aimed at averting "sticker shock" during periods of extreme heat or cold.

Officials said, "Let’s face it: January 2018 in the Tennessee Valley was brutal. With weather dropping into the teens and twenties, conditions were harsh - for humans and for heaters. As a result, many consumers were surprised with unusually high power bills caused by the unusually low temperatures.

"If you were one of those people, you’ll be glad to hear that TVA is working on a new pricing structure that will normalize your electricity bills during the lowest lows of winter and the highest highs of summer - preventing sticker shock on both ends of the spectrum.

 Cass Larson, TVA’s vice president of Pricing and Contracts, said, “We are very focused on keeping rates low for everyone and providing more bill stability over the course of the year.”

He said TVA is working on a wholesale rate change that will modernize its pricing structure by lowering energy rates and adding a fixed rate charge to access the power grid.

He stated, “TVA and local power companies in the Valley really provide two products - reliability (ensuring the power stays on around the clock) and energy (the electricity used to power lights, heating, cooling and so forth). We need to better balance how we charge for both pieces.”

Mr. Larson said, "One of the key benefits of modernized pricing is bill stability. Lower energy rates with higher monthly charges mean that bills get more stable for consumers. In months with naturally low bills, like spring and fall, bills may be slightly higher. But in the coldest winter and hottest summer months, bills will be noticeably lower. This will especially help low-income families who tend to have the highest cost of electricity relative to their income.”

He said TVA’s modernized pricing structure will also:

  • Keep rates low
  • Stimulate economic growth
  • Help consumers make more informed investment decisions

Mr. Larson said, “The grid is our shared resource; it’s what powers our lives and keeps us all comfortable. With hard work and investment, we’ve kept our grid 99.999 percent reliable for the past 17 years, and there’s real value to that.

"With TVA now placing a price on the reliability of the power grid itself, it’s important to point out some of the grid’s benefits:

  • Fuels modern life, from air conditioners to computers
  • Saves lives during extreme weather
  • Power quality attracts high-paying jobs in high-tech industry and technology companies

He stated, “Since everyone benefits from reliable power, everyone should share the cost of maintaining that reliability. We all expect the lights to come on when we want them—24/7. Maintaining the equipment and systems needed for that takes continued investment.”

Mr. Larson said, "It’s important to emphasize two points about the pricing change.

"First, consumers still have the power to control their bills through conservation and energy efficiency. The second is that the new rate structure change will not bring additional revenue to TVA.

“We are a not-for-profit, public power company whose mission is to keep rates as low as feasible. We are always on the side of the people of the Valley. In fact, we cut more than $1.5 billion annually in costs over the past few years to protect consumers and keep power bills low for years to come.”

Mr. Larson said he and his team are still working through the details of the rate change in partnership with local power companies, but consumers will have a chance to provide feedback through a public comment period before TVA’s Board meeting in May.



Catoosa County Arrest Report For Feb. 16-22

Click  here  for the Catoosa County arrest report for Feb. 16-22. (click for more)

Dalton Police Department Investigating Shoplifting At Walmart

The Dalton Police Department is asking for the public’s help identifying two men who worked together to shoplift a Bose sound bar speaker and a hoodie sweatshirt from the Shugart Road Walmart. The suspects were recorded by store surveillance. The incident happened on Sunday. Two white males entered the store together an loitered for several minutes by an ATM before walking into ... (click for more)

Legislators: Protect Our Students And Teachers

When students step into their classrooms, they are there to learn and prepare for their future. Our teachers serve to advance each student’s education and guide them towards success.  Educators have an additional responsibility: maintaining the trust and respect of their students by conducting themselves professionally and responsibly. The vast majority of our ... (click for more)

Roy Exum: The Saturday Funnies

Every day, without exception, I find a number of “treats” in my daily dose of email. These funnies, and other pertinent information, are sent to me by a myriad of “Internet Buddies” who I repay by sending out some of the funniest that I collect. Think of it as sort of a “co-op” for my readers to enjoy. When The Saturday Funnies began last summer, it was what I still think is ... (click for more)

Bearettes Wallop Warren, 87-22, In Region 3-3A For 61st Win In 62 Games

CLEVELAND, Tenn. – Bradley Central is the state’s No. 2-ranked girls’ team, according to MaxPreps. The Bearettes (29-0) is the District 5-3A tournament champion. Visiting Warren County has a sub-.500 record and is the No. 4 team out of District 6-3A. So, on Friday night at Jim Smiddy Arena, the Bearettes played the favorite’s role perfectly and humbled the Lady Pioneers, ... (click for more)

Signal Mountain Teams Avoid Upset Bids By Sequoyah

Both Sequoyah basketball teams came to Signal Mountain Friday night for Region 3-AA quarterfinal games as fourth-place finishers in District 5-AA and both with losing records. Apparently, they weren’t ready to turn in their equipment just yet as they played like there was no tomorrow against the host teams. Both teams from Madisonville ended up on the short end of the final ... (click for more)