NASHVILLE, Tenn. (WKRN) — Customers of Nashville Electric Service (NES) will see an increase in their bills soon, as a rate hike from TVA has taken effect.
Effective October 2023, the TVA adjustment will raise residential customer’s monthly bill by 3.6%, or an overall increase of around $4.83 per bill, NES said in a statement.
The adjustment locally is due to a TVA wholesale rate increase of 2.5% as well as a 1.1% increase due to the end of the Pandemic Recovery Credit. TVA began offering the relief credit in November 2020, and NES passed through the credit to customers, but that credit ended as of Oct. 1, NES said.
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The electric provider said it tries to limit its increases to 3-5% every three to five years to cover the rising costs of serving Middle Tennessee, but TVA can increase wholesale rates on a yearly basis, and those increases are passed through to customers.
“When TVA makes a change to the way they bill NES, whether it be a structure change or a rate increase, those changes must be reflected in the way NES bills customers,” the utility provider said.
As a way to help combat spikes in usage costs, NES recommends customers who have been at their residence for at least 12 months sign up for Balanced Billing. The program is designed to average the cost of their home’s energy use over the course of the year to better manage seasonal increases.