TVA adopts grid access fee to boost fixed portion of power bills

The Tennessee Valley Authority will impose a grid access charge for the first time this fall as an initial step toward pricing electricity more on a fixed monthly basis and less on how much energy is actually consumed.

The rate restructuring approved by TVA directors Thursday takes only a small step toward imposing more fixed costs on power bills, imposing only a half-cent-per-kilowatthour grid access charge on the municipalities and power cooperatives that sell TVA-generated power across TVA’s 7-state region. The higher fixed charges for local power companies will be offset by a drop in the variable price of power.

Published in Times Free Press, 10th May, 2018