TVA Rates

Living in the Tennessee Valley, we enjoy electric rates lower than 70 percent of the country. But TVA provides much more than power through these low rates.

From our integrated system of hydroelectric dams that helped tame the Tennessee River, tap its power, and leverage its presence as an asset for economic development—to our role as a community partner supporting local charities, STEM education, food pantries and disaster relief—TVA’s rates provide a better life for all of the nearly 10 million residents we serve with our local power company partners.

TVA’s expert management of the river system continues to protect public health and safety 365 days a year—a major public benefit that is paid for out of TVA’s rates. Financially, it’s estimated that TVA’s flood control efforts have averted more than $7 billion in potential damage.

Environmental stewardship of the resources we manage includes taking care of 293,000 acres of reservoir land, 11,000 miles of shoreline and more than 80 public recreation areas. These resources provide a significant economic benefit to the Valley region, supporting 130,000 jobs and bringing in $11.9 billion a year in recreation benefits alone.  

TVA’s almost half-a-billion-dollars a year in lieu-of-tax payments to state and local communities are used to fund community programs, school systems or other areas deemed important locally. These funds, too, come out of our sales of electric power.

We conduct extensive economic development activities in partnership with state and local governments and community organizations. Last year, these partnerships helped attract or retain more than 70,000 jobs and more than $8.3 billion dollars in capital investment across the broader Tennessee Valley region.

All of this work is vitally important to our region and those we serve—and all of it is funded through energy sales.

The Role of Public Power

TVA is a public power wholesale energy provider, meaning we provide energy to 154 local power companies throughout the Tennessee Valley, who then bring that power directly to your homes and businesses.

We charge our local power company wholesale rates, and they, in turn, structure retail rates for the residents and companies they serve.

Public power means we’re not here to make a profit, we’re here to make a difference. With no shareholders to appease, we can ensure low rates and low energy bills.

These low energy bills attract companies from across the globe—bringing with them high-paying jobs. Tennessee Valley public power allows us to sustain our legacy of bringing prosperity to the Valley, while still advocating for local control with community leadership.

Tennessee Valley public power also means everything we and our local power company partners do is in the best interest of the entire Valley. Working closely together, we make life better for the people we serve.  

The people who work in public power are your neighbors, your friends and your family. We have a vested interest in your success.

TVA 2018 Rate Change Proposal

The TVA Act requires TVA to supply power at the lowest feasible cost. This has been part of our mission from day one, and that mission hasn’t changed in 85 years.  

TVA is currently proposing a rate change to restructure how we design our rates. This is being done to more fairly allocate costs—ensuring the cost of power is more fairly spread across everyone who benefits from it and reducing the variability of bills during high demand periods in the winter and summer.

To be clear, this proposal is not a rate increase.

A grid access charge would be added, and TVA would take that same amount out of our energy charge; it will actually make rates more stable for our customers.

The rate change proposal is an example of how TVA and local power companies have the Valley’s best interests at heart, and we’re doing the right thing—the best thing—to keep rates as low as possible now and into the future.

For more information on this rate change, visit our 2018 Rate Change website.