Knoxville, TN – The TVA directors Friday approved a
7 1/2 % across the board electric rate increase. The hike will bring in about $524 million a year.
The country's largest public utility blamed the rising cost of fuel and purchased power from other utilities.
The increase is effective October 1st and is TVA's first since 2004.
The higher rates will affect the 62 indistries served directly by TVA and about 8.5 million customers in seven states.
Key components of the $8.7 billion fiscal 2006 budget include $340 million toward debt repayment.
There's also $200 million for clean air improvements. Capital projects total $1.1 billion, largely for the re-start of a Brown Ferry nuclear plant reactor in Alabama in 2007.