TVA to Raise Prices

Submitted by WhitesCreek on May 15, 2012 - 6:32am.

Tennesseans cut back on power usage over the winter so...

TVA is planning to boost its electricity charges by 0.7 percent in June -- the third consecutive month of higher fuel costs boosting the monthly light bill for residential and industrial power users in TVA's seven-state region.

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No Surprise

Some of us tried to sound this alarm over two years ago. TVA made this decision back then to pay for the Kingston Fossil Fuel Plant disaster. TVA enjoys the publicity they get for all of the "wonderful" things THEY are doing to clean things up even better than it was. However, they effectively avoid the subject of who pays for it in the long run. On the books, it looks as though TVA has paid millions to clean up something that, through neglect, was their fault. However, the plan has always been to raise rates for each customer over a period of 15 years to pay for everything. The rate hike comes as no surprise to me, and others who have watched since the beginning.
If you actually think TVA will lose money on the disaster, then go see what their bonds sell for on Wall Street. You can find out the profit those bonds have brought in. And if you are interested, you can buy into TVA. The catch is, you cannot buy bonds directly from TVA. There is a list of investment banks you would have to buy through. Private power company, or Government agency? You decide.

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