Press Mention The Knoxville News-Sentinel July 1, 1986
SACE Quoted
TVA rate increase
In this mention
TVA Director John Waters Jr. resists a staff-recommended rate increase for October, citing a preference to keep increases below 10 percent. The rate hike is driven by costs from the shutdown of TVA's five nuclear reactors since August for safety reasons. The Tennessee Valley Energy Coalition (TVEC), a ratepayers' group, acknowledges the expense will be significant.
I think we all realize the cost involved in patching up their nuclear foul-up was going to be expensive
Joanne Thompson
Original clipping
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Full transcript
TVA rate increase
by LAURA SIMMONS
News-Sentinel staff writer
TVA Director John Waters Jr. says he's not going to rubber-stamp a rate increase his staff recommends for October.
"Any rate increase we have will be only as a last resort," Waters said Tuesday.
However, agency officials say privately that rates must increase to recover the cost of replacing the power lost by the shutdown of TVA's five nuclear reactors for safety reasons. TVA nuclear reactors have not produced electricity since August.
Waters said TVA must work harder to control expenses across the board in the power program.
"The board has said on several occasions that it would like to keep the rate increases as low as possible and hopefully at least below 10 percent," TVA spokesman Bill Stevenson said. "They've had that goal for a number of years."
The rate staff will present recommendations for a rate increase during a preliminary rate review
July 30.
Final approval of the rates for next year is scheduled for Aug. 29. The rates will take effect Oct. 2.
For the first time this year, TVA will hold "listening sessions" around the region to gather public comment on the proposed rate increase.
At least one board member will be present at each session, according to a Tuesday memorandum by TVA General Manager Bill Willis. The schedule for the listening sessions will be announced later.
Mark Thompson, spokesman for the Tennessee Valley Energy Coalition, a ratepayers' group, said it's no surprise that TVA will increase the rates. "I think we all realize the cost involved in patching up their nuclear foul-up was going to be expensive," Thompson said.
The first six months of 1986 have been the driest in 96 years of recordkeeping in the valley.
"The average rainfall was 14.52 inches. Normally we get 28.01 inches," the official said.
June's rainfall was half of the normal amount — 2.07 inches compared to normal rainfall of 4.14 for the month.