TVA Board cuts power rates, effective Apr. 1

KNOXVILLE, Tenn. - The Tennessee Valley Authority Board has cut electric power rates for the second time this year.

Meeting in Knoxville, Tenn., Thursday, board members voted to further reduce a fuel charge that drove an initial 20 percent rate increase last fall.

Seventeen percent of that hike was based on higher fuel cost estimates.

TVA reduced that by 6 percent in January and decided Thursday to cut it another 7 percent, effective April 1.

The utility estimated the reduction would save average residential power users between $4 and $9 monthly.