Utilities that purchase their power from TVA, like North East Power, have received a 2.5% pandemic reduction for the past 3 years. They announced last week, that the pandemic reduction will end on October 1, 2023. In conjunction with the reduction ending, TVA’s Board of Directors has approved a wholesale rate increase of 4.5% also effective October 1. The result of the two decisions will be a 7% increase on the wholesale power bill. All North East Power members will be affected by this increase, which is passed directly from TVA to our members. None of this increase will go to North East Power.
Due to rising costs, North East Power was already exploring a small rate increase. As you can see, the items we use each day to keep your power on have increased a considerable amount. North East is increasing rates by 1.98% to keep up with inflationary pressure. This will be the first time North East has increased rates since 2013. We know an increase can be challenging for our members, so our Board only increases rates when absolutely necessary.
The average member of North East Power uses about 1200 kWh per month or $149.58 on their monthly bill. These members should expect an increase of roughly 30 cents per day or $9.16 per month added to their bill. Of that amount, $6 goes directly to TVA to pay for the wholesale increases, the rest will be used by North East Power to continue to provide the best service we can.
To learn more about the TVA increase, please visit: https://www.tva.com/newsroom/press-releases/tva-plans-to-invest–15-billion-over-the-next-three-years-to-meet-region-s-growth