The Tennessee Valley Authority board of directors on May 10 approved the establishment of a wholesale fixed rate, or grid access charge, equal to six percent of the wholesale rate, the equivalent of about $0.005 cents per kilowatt-hour.
The variable portion of the wholesale rate, will be reduced by the same 6 percent, or $0.005/kWh, making the change revenue neutral for TVA, TVA noted.
It said that the new structure is consistent with other utilities and service providers across the country. Individual monthly power bills across the region may vary slightly as local power companies incorporate this change into their own rate structures beginning October 1, 2018.
The board also authorized a three-year pilot program to establish an optional electric vehicle charging rate.
Improved performance of generation and transmission assets
TVA noted the improved performance of all of TVA’s generation and transmission assets has allowed a further reduction in its operating expenses over the first two quarters of the fiscal year.
Interest costs also remained lower than budget and favorable cash flows reduced debt. Combined with high power sales driven by the colder weather this winter, these factors resulted in an improved net income.
TVA said that additional Q2 FY18 achievements include, among others:
- Reduced TVA’s overall carbon emissions by nearly 50 percent from 2005 levels, on track for a 60 percent reduction by 2020;
- Retired the Allen Fossil Plant near Memphis after 58 years of service while essentially completing the Allen Combined Cycle gas generating facility, which entered commercial operation on April 30;
- Completed an extended power uprate on Unit 3 at the Browns Ferry nuclear plant, that will contribute an extra 155 megawatts of energy. Similar uprates on units 1 and 2 will be completed next spring.
TVA on May 4 reported $5.3 billion in operating revenues through the six-month period ended March 31, 2018, a five percent increase from the same period a year ago. The higher revenues were driven by a six percent increase in electricity sales, primarily due to weather conditions.
During the same six-month period, total operating expenses decreased four percent, as compared to the same period last year, primarily due to decreased fuel expense driven by higher hydro and natural gas generation and lower market prices for natural gas.