KNOXVILLE — TVA’s Board of Directors today approved a new approach to how the utility better links the actual cost of generating power with the amount customers pay.

The rate design and changes to the product offerings associated with the Strategic Pricing Plan will take effect on October 1, 2015. This is the culmination of a multi-year collaborative effort among TVA, local power companies, the Tennessee Valley Public Power Association and the Tennessee Valley Industrial Committee.

The new rate structures will better reflect the cost of providing electricity at different times of day and year. This will allow our customers to make more informed decisions on energy usage and provide opportunities to lower their cost and the overall cost of serving the valley.

These changes will allow TVA, local power company partners, and our directly served to maintain rates that are competitive and affordable for all customer classes.  The collaboration between TVA and customers and the additional clarity on longer-term direction provides our customers more confidence to invest in their own businesses. This will help ensure that electric prices remain as low as possible to enhance the economic prosperity of the Tennessee Valley.