Plateau Electric Prepares For Rate Hike

September 1, 2005

Local power rates will increase by just over 7.5% in October, it was announced this week. Plateau Electric Cooperative CEO John Seale announced Monday that electric bills for meters read after October 1 will reflect an increase of 7.52%.

“Just like many of the other goods and services that we all purchase, TVA has experienced increased costs, particularly for fuel, coal and purchased power, that have resulted in this action,” Seale said in a written release. “Additionally, this should help TVA to improve their long-term debt situation.”

The 7.52% increase is the same as the increase that TVA has passed along in wholesale costs to electric power distributors.

Seale said that the cooperative performed a review of local retail rate schedules and was careful to hold the rate increase to 7.52% change for each class of customer.

“Considering that rates in Tennessee as a whole are about the fourth-lowest in the nation, the valley distributors feel that TVA has a pretty solid track record for keeping rate increases to a minimum,” he said. “Hopefully, this will be the last (rate increase) for a while.”

newsroom@ihoneida.com

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