The coming fall season is set to deliver a chill to residents' wallets in Tennessee as the Tennessee Valley Authority (TVA) has announced a 5.25% increase in energy rates. Starting in October, customers will see higher energy bills, with an average increase of about $4.35 a month, as reported by Action News 5. Memphis Light, Gas and Water (MLGW) confirmed the hike, citing customers should expect a similar monthly increase.
This move by the TVA is the second such increase in a year, following a 4.5% bump approved last August. With the cost of living perpetually on a silent march upward, for retirees like Memphian Valerie Harris, who carefully tracks her light bill, this increase is more than just numbers on a page. She reflected on the impact of these hikes to Action News 5, "That $5 over the month adds up... that’s something you could [use] as far as your groceries or gas in your tank. Overall, it adds up, and it makes a difference in your budget."
On the same wavelength, Mattie Kelly, a North Memphis resident for over two decades, expressed concerns to Local Memphis about the financial strain she faces, emphasizing that "Times are real hard right now." The unanimous vote by the TVA board in Florence, Alabama to authorize the rate increase is expected to bring in an excess of $900 million for the energy provider.
TVA President and CEO Jeff Lyash was conscious of the burden increases can cause, asserting, "We recognize that people don’t pay rates, they pay bills, and that matters," which he disclosed to al.com. In light of the region's burgeoning population and consequential infrastructure investments tallying $16 billion by 2027, Lyash underscored TVA's effort to minimize expenses by millions annually.
