Johnson City Power Board Limits Rate Increase

A week after the Tennessee Valley Authority announced its largest increase in electric rates in three decades, Johnson City Power Board customers are receiving some relief. Over the next year, TVA will charge the JCPB about $27 million more dollars to buy electricity. With the drought conditions, TVA says hydro power generation is down by 50%, meaning TVA has to buy more power from utilities. Because of that, JCPB customers will already see their bills jump by 16% starting October 1st. Yesterday, the JCPB discussed an additional 4% increase, but ultimately voted it down.

“We really didn’t think at this time it was appropriate to add an additional cost, considering how the economy’s going right now,“ JCPB Chief Public Relations Officer Robert White said. “We really didn’t feel like our customers could bare that additional cost.“

That’s good news for customers like John Saylor. He paid his $85 JCPB bill Wednesday, but in just under two months, his monthly bill will increase by $14.

“It’s a little high, but I guess I’ll have to pay it like everybody else,“ Saylor said. “I don’t have much choice.“

The average JCPB customer currently pays a little more than $176 a month for electricity, but once this rate increase takes effect, those bills will jump up to a little more than $204, a total increase of about $28 a month. It could have increased by another seven dollars, if the JCPB approved the 4% increase, but since the JCPB is in good financial shape, that extra in revenue is not needed this year.

Salyor, who lives on a fixed-income, is thankful for that decision.

“I appreciate that,“ Salyor said. “Anything to help me, I’m willing to take it.“

For those people who will still struggle to pay their bills, the JCPB recommends budget billing or fixed monthly payments. Budget billing spreads the higher costs evenly over a 12-month period. For more information, call the Johnson City Power Board at (423) 952-5014.