EPB's Board of Directors has approved a 3.5% increase in electric power rates effective July 1 to cover increases in operating costs to deliver electric power, according to a news release.
The new rates apply to EPB's residential, commercial and smaller industrial customers. This adjustment will help offset the rising costs of recovering from more frequent severe weather events and the effects of large monthly temperature fluctuations on the peak energy demand charges that EPB pays to the Tennessee Valley Authority for generated power.
For residential customers who use a monthly average of 1,000 kWh of electric power, this adjustment will reflect an increase of about $5 on their monthly bills, which does not include the monthly fuel cost adjustment that TVA passes through to customers. The 3.5% change includes increases to EPB's base energy rate and the fixed monthly customer charge.
This is EPB's first rate increase since 2011. Payments from EPB's Fiber Optics division to the Electric Power division for use of the smart grid's fiber network have allowed EPB to defer rate increases that would have totaled 5% over the last four years.
“We work hard to provide the best possible value to our customers, but we can't control the external factors that drive increased energy costs,” said president and CEO Harold DePriest. “I believe that with this rate adjustment, we'll be able to hold the line on rates for several years.”