TVA Proposes Additional Grid Access Fee for Local Power Companies

The Tennessee Valley Authority is proposing a grid access fee in addition to what it currently charges local power companies that distribute its power, The Chattanooga Times Free Press reports. TVA cut its original grid access charge in half and agreed to consider allowing local power companies new flexibility in generating their own renewable power, to keep or recruit the growing number of businesses wanting to buy green energy.

TVA plans to add a half-cent-per-kilowatt-hour access charge for its sales to local power companies, expected to generate about $600 million for the organization. TVA contends that the rate structure will better align its charges with actual costs, however, detractors argue that TVA is shifting more of the fixed costs from its power generation in a manner that could hit poor people and low energy users the hardest. If approved by TVA directors, the change will go into effect on Oct. 1.

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