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TVA Rates Could Go Up $3-6

By Alabama Public Radio

Knoxville, TN – The Tennessee Valley Authority will consider a 524 million dollar electric rate increase for the coming fiscal year. TVA estimates the increase would raise residential bills from $3.50 to $6.50 a month. It would be the first jump in rates since 2003. The federal utility cites the rising costs of fuel and power purchases from outside its system as the main reason for the higher rates. Representatives of TVA's 168 power distributors were briefed on the staff rate proposal Monday in Nashville. The TVA Board of Directors will consider the increase when it meets in July to discuss the budget for fiscal year 2006.

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