The Tennessee Valley Authority's Board of Directors on Aug. 24 voted to approve $15 billion in investments over the next three years to build additional generation and upgrade the existing system.
TVA noted that it is focused on meeting growing electricity demand while maintaining energy security and moving to a net-zero carbon future.
During the decade before the COVID pandemic, TVA’s seven-state region saw almost no electric load growth.
“Post-COVID, the region has experienced tremendous economic growth, fueled by several factors -- including TVA’s clean, affordable electricity,” it said. TVA’s base power rates have remained flat “during these 4 years while significant investments were made in our power system.”
In addition, the area’s population is growing at about three times the national average.
To ensure the region has the energy it needs to meet growing demand and economic development, the TVA Board unanimously approved a 4.5% increase in the effective rate. That translates to an average increase of about $3.50 on a typical residential energy bill each month.
TVA said that the need for funding to build new generation is not unique to TVA. Even with a rate adjustment, TVA’s energy costs remain lower than 70% of the nation’s top 100 utilities. For comparison, surrounding peer utilities requested or received $6.6 billion in rate increases from February 2022 through December 2023.
“TVA is not immune to cost increase, inflation and supply chain challenges,” said TVA president and CEO Jeff Lyash. “We worked to minimize any impact on families while balancing our region’s growing energy needs, and these funds will allow us to invest in new capacity as well as invest in the reliability of our current assets.”
Over the past 10 years, TVA has invested $25 billion in existing and new generation. Currently, TVA is adding 3,800 megawatts of new generation. Three new flexible, dispatchable units at the Colbert plant site in Alabama came online in July under budget and ahead of schedule.
An additional 1,250 megawatts are scheduled to come online in 2023 and 2024 at sites in Kentucky and Tennessee.
TVA is also working to add more than 10,000 megawatts of new solar energy by 2035 and is adding its first battery storage facility in Vonore, Tennessee.
In addition, TVA is working to offset approximately 30% of new load growth in the next 10 years through energy efficiency and demand response programs.
TVA said it will invest $100 million in energy efficiency and demand response programs to accomplish this, continuing to help lower energy bills.
