If all goes according to plan, TVPPA-member utilities won’t see a rate increase from TVA until at least 2031.
Meeting Aug. 22 in Knoxville, TVA’s board of directors approved a $10.59 billion budget for fiscal 2020 that includes no increase in wholesale power rates for TVPPA-member utilities. TVA CFO John Thomas added that TVA’s “financial discipline” of recent years will “allow us to maintain stable rates through 2030.”
TVPPA President & CEO Doug Peters said he and TVPPA’s membership were pleased with TVA’s budget and long-term forecast.
“We’re encouraged by the fact that leveling rates is a cornerstone of TVA’s financial plan for the next decade,” Peters said.
TVA’s board also adopted a long-term partnership agreement between TVA and TVPPA-member utilities. TVA’s directors also approved an updated Integrated Resource Plan designed to address the Valley’s energy needs for the next two decades, and an initiative by which TVPPA-member utilities local power companies would have options in financing investments to support broadband. At the same time, TVA would maintain oversight to ensure electric-system operations do not subsidize other utility functions.