KNOXVILLE — Lower power bills are expected as TVA begins its new fiscal year on Thursday.
The utility’s board raised rates when it met last month, but reduced the fuel adjustment charge.
Although that fee can now be altered monthly, the combined result for most electricity users will be at least an initial reduction in what they pay.
TVA will raise base rates by 8 percent effective Thursday, but an 11 percent decline in fuel adjustment charges should offset that at least initially. The decision will impact about 9 million people receiving electricity from TVA in Tennessee, Alabama, Mississippi, Kentucky, Georgia, North Carolina and Virginia.
For a household using 1,000 killowatt hours per month, the rate increase will add $5.52 cents to the power bill, but fuel surcharge reduction will equal $7.36.
The Associated Press