Utility customers will see an approximate 6.5 percent electric rate increase effective Oct. 1

LaFollette Utility Board members met on Monday evening approving the 2025 electric and water rate schedules. The Tennessee Valley Authority is raising utility rates effective Oct. 1.

By Charlotte Underwood

LAFOLLETTE, TN (WLAF) – The Tennessee Valley Authority is raising the whole-sale rate of electric, according to LUB Interim General Manager Regina Kennedy. Utility board members met on Monday evening to approve the 2025 electric and water rate schedules as set by TVA.

Utility customers will see an approximate 6.5 percent electric rate increase effective Oct. 1. According to Kennedy, TVA raised the whole sale rate by an approximate 4.5 percent and LUB has a required “adder for the retail”, which is 2 percent, making the total increase approximately 6.5 percent.

“It’s not a straight 6.5 percent though, it’s based on whether it is residential accounts or general power accounts. Some will be less than 2 percent, some will be around 3 percent,” Kennedy said.

On the water side of rate schedules, inside corporate limits, starting July 1, it goes from 0-1,000 gallons included in the minimum rate of $19.90 and changes to 0-500 gallons for the minimum of $19.90. In July 2025, this will change again, and there will be no water usage included in the customer charge of $19.90.

The rate for outside corporate limits is changing from 0 to 1,000 gallons for $28.58 to 0 to 500 gallons for $28.58. It changes in 2025, and there will be no water usage included in the customer charge.

According to Kennedy, most water utilities are already not including any water usage built into the customer charge.

LaFollette Utility Board members also approved the budget and financial forecasts for fiscal year 2025, this included a 3 percent cost of living raise for LUB employees.

LUB board chair, Boyd Henegar, far right, is retiring off the board after 10 years of service. John Snodderly, second from right, will take his place as chair next month. Also pictured is LUB members Joe Snodderly, far left, and Jay Willoughby, second from left.

Final business approved was a resolution designating authorized representatives of the LaFollette Board of Public Utilities to sign for Electric System Revenue anticipation notes. This is needed for the change over from Boyd Henegar as LUB chair to John Snodderly come July. Henegar is retiring from the board after serving two five-year terms.

Kennedy also set an organizational meeting for Tuesday, July 2, at 10 am, with LUB members to discuss the many upcoming changes with GM Kenny Baird’s retirement. The LaFollette Utility will be closed on July 4th for the holiday and the next regularly scheduled LUB meeting is Monday, July 29 at 6 pm. (WLAF NEWS PUBLISHED – 06/25/2024-6AM)

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