Cookeville residents could see a slight increase in their electric bills after a rate adjustment was approved by the Tennesssee Valley Authority (TVA).
Electric Department Director Tony Peek said the TVA decided to increase wholesale rates by 1.5 percent in the area.
“We generally look at our average residential customer [and] how much of an increase that’ll be,” Peek said. “It’ll be about $1.50 to $1.75 a month. TVA has done this now about four or five consecutive years, taking the 1.5 [percent] just under the rate of inflation.”
Peek said if the department doesn’t increase its rates to reflect the TVA’s decision, it would cost the city in the long run.
“If we didn’t pass it along to our customers, it would cause about a $685,000 to $700,000 deficit to our budget, which we can’t stand,” Peek said. “So I’ll be asking that you (City Council) allow me to adjust the retail rates to the customers.”
Peek said the proposed rate increase would effect both residential and commercial customers in the city.
The proposed rate increase was presented to Cookeville City Council and officials during Monday’s work session. Members of council will vote on the proposal during Thursday’s meeting at 5:30 p.m.
