New rates approved last week by the Tennessee Valley Authority could mean Cullman County consumers could expect to begin seeing slightly higher utility bills this fall.

Thursday, Aug. 22, the TVA board approved its second rate hike in less than two years. According to a TVA press release, the increase was needed to fund nearly $16 billion for the construction of new infrastructure to meet the rising energy demand.

“We recognize that people don’t pay rates, they pay bills, and that matters,” TVA president and CEO Jeff Lyash said in the release. “We know this is a kitchen table issue for many families across our region. At TVA, we don’t like price increases any more than you do, and that’s why we continually work to reduce expenses by hundreds of millions of dollars each year. We have done everything possible to absorb costs as we invest in the reliability of our existing plants, construct new generation to keep up with growth and maximize solar to produce more carbon-free energy.”

New rates are set to go into effect Oct. 1 and will be reflected on consumers November billing statements. Both local utility providers, Cullman County Electric Cooperative and the Cullman Power Board, are both distributors of TVA power.

In an emailed statement sent to The Times, the Co-op said it had anticipated the announcement, but that any increases would be passed directly back to TVA.

“The announcement of the TVA rate increase last week was expected. TVA has been saying it needs more revenue to pay for additional power generation to meet the growing demand for electricity across the southeast and to cover the increased cost of materials and labor. All of that additional revenue goes to TVA and does not impact Cullman Electric’s bottom line. Approximately 70 cents from every dollar of electric revenue Cullman EC receives goes to TVA to pay for electricity. The other 30 cents from each dollar pays for everything else the co-op has from nuts and bolts to bucket trucks and employees,” the statement said.

As of press time, attempts to reach officials with the Cullman Power Board were unsuccessful.

TVA said the new rates should be expected to be reflected on electric bills by November. Based on the average residential bill in 2023, it anticipates those bills to be roughly $4.35 higher after accounting for the rate increase.

The Co-op reiterated the increased financial pressure local utility companies are facing and said it plans to address those issues next month at its annual membership meeting.

“We’re dealing with the same cost pressures locally. Our service area is growing, and at the same time the price of materials and equipment needed to provide safe, reliable electricity is increasing. At some point, rates have to change to cover the increasing costs,” the statement said.