TVA approves 7 percent rate increase, first since 2006 - WMC Action News 5 - Memphis, Tennessee

TVA approves 7 percent rate increase, first since 2006

CHATTANOOGA, Tenn. (AP) - The Tennessee Valley Authority is raising electric rates for the first time since 2006 to help pay for new generating plants.

TVA directors agreed Friday to raise rates 7 percent effective April 1, increasing the average residential bill by about $8 a month.

The increase would raise about $300 million to increase power production, including the completion of a second reactor at the Watts Bar nuclear plant and buying more gas-fired plants.

Knoxville-based TVA, the country's largest public utility, provides power to 159 distributors serving about 8.8 million consumers in Tennessee, Alabama, Kentucky, Mississippi, Georgia, North Carolina and Virginia.

The organization representing the utility's distributors supported the increase.

(Copyright 2008 by The Associated Press.  All Rights Reserved.)

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