See Hibbs Island after TVA remediated it due to erosion
TVA has rehabilitated Hibbs Island just below Norris Dam to prevent it from slowly washing away. It will now reopen to fishermen on May 24, 2024.
The Tennessee Valley Authority’s board of directors is expected to approve a 5.25 percent increase in the base electricity rate – the second rate increase in two years. The state-owned power company wants to meet the growing demand by financing the construction of new power plants.
The board will vote on the increase during its quarterly meeting on August 22. The increase would increase monthly electric bills in the Tennessee Valley by an average of more than $4 and is expected to generate about $500 million in additional revenue for TVA.
Combined with the 4.5% base rate increase approved in 2023, the rising rate would be just under a 10% increase that would allow local utilities like the Knoxville Utilities Board to modify long-term contracts with TVA. If TVA increases rates by more than 10% in a period of five consecutive years, KUB told Knox News via email, the local utility association can shorten the term of its power supply contract from 20 to 10 years.
KUB buys nearly all of its electricity through a wholesale contract from TVA and resells it to Knoxville customers at a markup that funds operations. It is one of 153 local power companies that buy power from TVA, the nation’s largest public utility.
KUB passes TVA’s fare increases and fuel costs directly to customers. Fuel costs may vary from month to month.
The 2023 tariff increase is expected to generate $405 million by the end of the current fiscal year on September 30.
In May, the TVA board decided to spend $61 million of the tariff increase revenue to extend the life of the nuclear power plants that provide nearly half of TVA’s electricity.
The TVA board will also vote on new nuclear funding at its meeting on August 22
In addition to last year’s increase, the committee approved $15 billion over three years for the construction of new power plants, primarily natural gas plants. The rate increases are partly a response to high inflation and interest rates on new construction.
The board is also expected to approve an increase in the funding limit for TVA’s new nuclear program. In February 2022, the board initially approved $200 million for the program, which focuses on developing small modular nuclear reactors at the Clinch River Site in Oak Ridge.
TVA received an early site approval from the U.S. Nuclear Regulatory Commission in 2019 and plans to submit a construction application to the agency in 2025, CEO Jeff Lyash said during a quarterly earnings conference call on July 30.
Lyash previously told Knox News he was unsure how TVA would achieve its clean energy goals without new nuclear power.
Daniel Dassow is a growth and development reporter focusing on technology and energy. Phone: 423-637-0878. Email: [email protected].
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