"We recieved notification from TVA as it notified all its distributors that the first of April it would be increasing its wholesale power costs that it sends on to its customers," says Warren Rural Electric V.P. of Member and Affiliated Services, Gary Dillard.
Warren Rural Electric as well as Bowling Green Municipal Utilities say that the 9.95 percent increase could mean customers would pay around 8 more dollars a month on their electric bills.
Increased power needs since Hurricane Katrina is just one of the reasons TVA has to add 388 million dollars to its current fiscal year's revenue.
"They say that the increase is due to increasing fuel costs of coal and natural gas and what they have to pay-for-purchase power out on the market."
BGMU says it will recieve no excess profit from the increase while Warren Rural says it will only recieve an increase of 4-tenths of one cent.
Dillard says right now gas companies are unsure of if this increase is permanent or if customers could see more rises in the future.
"We don't know what is in store in the standpoint of being a distributor for the Tennessee Valley Authority. We do not know when they'll see the need for another rate increase at this time."
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