Utility Facing "Skyrocketing" Natural Gas And Coal Costs
posted August 6, 2008
TVA CEO Tom Kilgore said Wednesday that ratepayers will face a rate hike of up to 22 percent in October.
He said "skyrocketing" costs TVA has to pay for natural gas and coal will require the fuel cost adjustment of 15-25 percent.
Ratepayers could see their bill go up by $20 to $30.
Mr. Kilgore said in a teleconference with the news media that he hates to raise rates when TVA customers are struggling with other cost increases, but he said, "We have to pay our fuel bill."
He said the continued drought is also a factor.
With reservoirs running low, TVA is having to buy more power from other suppliers.
He said hydroelectric production is down from last year.
TVA will determine the exact amount of the hike in about two weeks, and it will go into effect Oct. 1.
It will be the third TVA rate increase this year and will be passed on to EPB customers.
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