TVA Initiates Rate Change Process

HUNTINGDON, Tenn. (February 26) — Carroll County Electric Department is entering a 180-day negotiation process with the Tennessee Valley Authority after TVA issued a rate change letter on Wednesday, February 18.

General Manager Ryan Drewry informed the board of the development at their regular meeting on Thursday, February 26.

“They haven’t issued a rate change letter since 2018,” Drewry said.

According to TVA’s FY 2026 Budget submitted to Congress, the authority approved a 5.25% base rate increase for FY 2025, following a 4.5% increase the year before, and noted that additional rate actions may be necessary.

TVA is currently undertaking more than $19 billion in capital investments to build new generation and update its power and transmission systems, mostly related to the increased demand of artificial intelligence.

Last year, Carroll County Electric approved its own rate increase that took effect in October, 2025.

The letter identifies seven areas TVA is looking to address, including contract demand alignment, rate structure stabilization, marginal pricing, enabling large loads, redefining manufacturing service applicability, off-peak energy charges, and on-peak hour shifts.

Drewry said each item is independent and will go before the TVA board to be adopted, modified, or rejected.

“Over the weeks and months ahead, we’ll be working with our rate consultant,” Drewry said, adding that the department had already met with the consultant the day before the board meeting.

The process involves collaboration between TVA and all affected local power companies and direct-serve customers to reach agreement on the proposed changes.

Drewry said the earliest TVA could take action would be August, with a potential October 1 implementation date.

“All this is yet to be determined,” he said. “Just want to let you guys know that we are in the middle of a rate change process.”