SACE Statement: TVA Proposes New Mandatory Fixed Fees

Guest Blog | March 9, 2018 | Press Releases

New Fees Would Impact Low and Fixed Income Customers Throughout the Tennessee Valley

Contact: Jennifer Rennicks, Southern Alliance for Clean Energy, 865-235-1448, [email protected]


Knoxville, Tenn. – Today the Tennessee Valley Authority (TVA) formally announced a proposal to adjust current rate structures by establishing a fixed “grid access charge” for the power it sells wholesale to local power companies.

The proposal was formally announced through a draft environmental assessment (EA), which is open for public review and comment until April 9, 2018. The TVA Board plans to vote on the proposed change at its May 10 meeting, scheduled to take place in Muscle Shoals, Alabama.

As noted in recent blogs and reports, the Southern Alliance for Clean Energy is concerned about the proposed change because increasing mandatory fees means that customers are forced to pay a higher fixed amount every month, even before they flip on a light switch. Customers lose the freedom to control their monthly bills through the use of energy efficiency and solar power.

Concurrent with this proposed rate change, TVA is beginning its long term “Integrated Resource Plan” process. SACE believes that making rate changes to undercut certain energy choices, such as the fixed charge announced today, and then starting a planning process that is supposed to fairly compare energy choices side by side, is backwards and disingenuous.