Power Prices

TVA and the local distributors of TVA power offer some of the lowest electricity prices in the nation. Competitive prices are good for consumers and good for the economy. They help retain and create jobs, supporting existing employers and attracting new business and industry to the region.

Background

The TVA Act requires the Tennessee Valley Authority to charge power prices sufficient to pay for the operations, maintenance and administration of TVA's power system, the service on TVA's debt, TVA's tax equivalent payments to states and counties, and TVA provisions for reserve funds and other operations. Given that, the act says, the objective should be that TVA "power shall be sold at rates as low as are feasible."

Key points

TVA considers providing low-cost, reliable electricity an essential part of its mission.
Competitive prices are key to attracting businesses to the region and creating jobs, part of TVA's mission to economic development. Site Selection magazine recently chose TVA as one of the top 10 North American utilities for achievements in economic development for a fifth consecutive year.
TVA's average retail price ranked 31st lowest among the nation's 100 largest utilities in fiscal year 2010 (the 12-month period ending September 2010), an improvement from 43rd lowest in fiscal 2009. TVA's average retail price was 7.9 cents per kilowatt-hour, nearly 20 percent lower than the group average of 9.9 cents per kWh.
TVA's average retail price ranked fifth lowest among 10 regional peers in fiscal 2010, an improvement from sixth lowest in fiscal 2009. TVA's 7.9 cents per kWh average retail price was nearly 6 percent lower than the peer average of 8.4 cents per kWh.
TVA's prices are below the national averages for the three major customer categories based on the latest (2010) data compiled by the U.S. Energy Information Administration (U.S.) and Electricity Sales Statistics/TVA (TVA):

TVA vs. U.S. Average Retail Price

(12-month period ending September 2010)
(cents per kilowatt-hour)

	TVA*	U.S.
Industrial rates: 16 percent lower	5.9 cents	6.9 cents
Commercial rates: 9 percent lower	9.6 cents	10.3 cents
Residential rates: 20 percent lower	9.1 cents	11.6 cents

*Average price consumers paid local power distributors for TVA-supplied electricity.

February 2011