The Tennessee Valley Authority’s board of directors approved a rate increase today, so starting April first, monthly electric bills in much of the state will cost 4 to 7 dollars more.
The region’s current state of drought is driving up costs for the utility. Hydroelectric plants aren’t making as much power as usual, and during the summer, the water in the Tennessee River was too warm to act as a coolant in nuclear plants. While there has been some rain over the fall and winter, it hasn’t been enough, so the coming summer is expected to be another costly one for TVA.
President Tom Killgore isn’t happy about the rate hike, but says it’s necessary.
“It will rain again someday, I just don’t know when. And until then, we’re trying to make sure that we pay our bills as we go and we don’t put this off, because it really is pay me now or pay me more later.”
TVA posted a 17-million dollar loss for the quarter ending December 31.
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