The Tennessee Valley Authority Board of Directors Thursday morning gathered in Knoxville, approving action toward nuclear investment, clean technology and the construction of additional generation.
Specifically:
— More than $350 million was allotted for the development of small modular nuclear reactors near its Clinch River site in Oak Ridge, Tennessee.
— A commitment was made for 10,000 megawatts of solar generation by 2035.
— And the Fiscal Year 2025 budget was ratified, one including a 5.25% rate increase to support sustained growth and the ongoing construction of 3,500 megawatts of new electric generation.
Initially, $200 million was earmarked for nuclear advancements in February 2022. With that promise increased nearly 100%, TVA President and CEO Jeff Lyash said this further investment only bolsters TVA’s promise for a carbon-free, efficient source of energy for the region’s growing population and economy.
According to TVA, this region’s population is growing three times faster than the national average. In 2023, the gross domestic product in TVA’s service territory also grew 0.5% faster than the national average.
To address needs, Lyash added that TVA is investing nearly $16 billion through FY27 to build new generation and infrastructure and enhance the reliability of existing assets. The completion of 1,400 megawatts and 800 megawatts solar options happened in 2024, and more increases are being sought.
Lyash said he knows that people “don’t pay rates, they pay bills, and that matters,” and the accepted rate increase is a “kitchen-table issue” for families in the region.
However, the average residential bill in Fiscal Year 2023 was $138, meaning a 5.25% increase translates to an extra $4.35 a month. In August 2023, the TVA Board of Directors approved a 4.5% base rate increase for Fiscal Year 2024, and Lyash said these funds helped support the completion of Paradise — as well as additional generating resources at Cumberland, Kingston, Johnsonville, and Shawnee.
Lyash also noted that diverse generation resources and reduced fuel costs have kept residential rates lower than 75% of the top 100 U.S. utilities, and through these first nine months of the fiscal year, power rates were actually 3% lower than this time last year — despite a rate increase.
In the last 10 months, TVA’s recent $1.5 billion effort to help offset 30% of anticipated load growth over the next 10 years has helped businesses and residents reduce their energy use — resulting in more than 320,000 tons of CO2 avoided.
This is equivalent to the carbon emissions of more than 35,000 homes powered for a year.
Adam May, TVA media specialist, said the power giant has been communicating with customers for several months about this expected rate increase — and, as such, have made appropriate plans.
Mitigation for increased bills, he said, includes a $1.5 billion investment into the Energy Efficiency and Demand Response programs and the continued minimization of expenses and operating costs.
