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TVA Rate Adjustment Will Impact Starkville Utilities’ Customers

Increase will add around $4.35 to average residential customer’s bill

Tennessee Valley Authority’s recent decision to raise rates will result in a 3.2% increase to Starkville Utilities’ electric bills. Starkville Utilities will not receive any proceeds from the increase, which is a 100% pass-through adjustment implemented by TVA.

The TVA Board voted at its August meeting to enact a FY25 5.25% base rate increase to provide the needed resources to meet the region’s demand and load growth. The monthly increase will add around $4.35 to the average residential customer’s bill.

“We recognize that people don’t pay rates, they pay bills, and that matters,” said Jeff Lyash, TVA president and CEO. “We know this is a kitchen table issue for many families across our region. We have done everything possible to absorb costs as we invest in the reliability of our existing plants, construct new generation to keep up with growth and maximize solar to produce more carbon-free energy.”

TVA is committed to providing affordable, reliable, resilient and clean power to communities and customers across the region. TVA kept its base rates flat for four years, until FY24, while making significant investments and upgrades to the system.

To meet sustained growth, TVA is investing nearly $16 billion through FY27 to build new generation and infrastructure and enhance the reliability of existing assets. TVA also is investing $1.5 billion in energy efficiency and demand response programs to help customers save on energy bills and offset 30% of load growth and peak demand over the next decade.

More details about TVA’s rate increase can be found here.

Starkville Utilities is a municipally owned and operated electric and water utility, serving more than 14,000 residences, businesses and industries in Starkville as well as the state’s largest institution of higher learning, Mississippi State University.

We are a Water and Electric Utilities Company in Starkville