UPDATE: TVA to reduce rates again

KNOXVILLE, Tenn. – The Tennessee Valley Authority will trim electric rates again on July 1, effectively erasing a huge rate boost approved last year to offset rising fuel costs.

The latest reduction will mean a 4.1 percent drop in wholesale power charges to TVA distributors serving some 8.7 million consumers in Tennessee, Alabama, Mississippi, Kentucky, Georgia, North Carolina and Virginia.

It will mean a savings of $2 to $5 a month for residential customers, who are now paying around $93 a month for 1,000 kilowatt hours of electricity.

This will be the third reduction in TVA’s fuel adjustment charge in as many fiscal quarters. It marks the last step in removing the portion of a 20 percent rate increase last year blamed on escalating fuel costs.

Duncan Mansfield/The Associated Press

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