In response to an impending increase in wholesale electric rates recently announced by TVA, and unlike many surrounding utilities, CUB’s board voted unanimously to “pass through” the rise in wholesale power cost to CUB customers without adding any additional revenue to CUB. 

TVA’s wholesale rate hike together with the quarterly Fuel Cost Adjustment (FCA), to be effective April 1, 2008, will cause CUB electric rates to increase by 8.9% for typical residential customers using 1,200 kilowatt-hours of electricity per month, resulting in a monthly cost increase of approximately $8.67.  Small commercial and most general power customers will see increases ranging from 8.4% to 9.5% depending upon specific usages. 

According to TVA, the adjustment in wholesale electric power and energy rates is necessary to meet rising fuel costs.  While CUB faces similar pressures of escalating operating costs, the decision was made by CUB to work within the budget and not add any additional increase to the electric rates.  Electric power distributors throughout the Tennessee Valley who purchase electricity from TVA will be affected by the wholesale rate and FCA adjustments.

In spite of the TVA wholesale rate changes, CUB electric customers will continue to enjoy electric rates that are among the lowest in the region. 

CUB’s electric system spans six counties and includes some 1,500 miles of high voltage distribution lines supplying electric service to over 29,000 customers.