BRISTOL, VA; August 24, 2018 – The BVU Authority Board of Directors voted today to decrease local revenue an estimated additional $1.755 million each year. The rate actions are to include a nearly $1.2 million rate cut effective this December, plus absorbing an October Tennessee Valley Authority (TVA) wholesale rate increase of more than $555,000.
These rate actions follow last year’s $1.75 million retail electric revenue decrease, which means BVU’s electric customers can anticipate a combined impact of over $3.5 million in estimated annual savings. These actions represent more than $35 million of community funds saved across the next decade.
“The Board of Directors’ decision to reduce BVU’s local revenue collection is a result of high performance levels and realized savings from divesting in BVU’s former OptiNet division,” explains Don Bowman, BVU President & CEO. “We believe these rate actions, coupled with last year’s rate cut, are in keeping with BVU’s public power model of providing services at the lowest possible cost.”
Later this year, BVU residential electric customers using 1,000 kWh per month will see an estimated decrease of $58 in their annual electric billing. The rate cuts are applied to volumetric pricing, so residential customers using 3,000 kWh per month can expect additional savings totaling approximately $126 each year. BVU estimates residential customers will save on average an additional $5 per month from the two pending local rate cuts.
“In anticipation of closing the sale of OptiNet, we have been carefully considering our own utility rates and finances. BVU is in a healthy financial position and looks forward to saving our customers an additional $1.75 million,” continues Bowman.
All electric rate actions by the BVU Board are subject to additional regulatory oversight from TVA. BVU’s financial model for absorbing the TVA wholesale rate increase was submitted for review in June of this year, with an anticipated implementation date of October 1, 2018. BVU plans to submit to TVA, by the end of August, a supplementary model outlining the nearly $1.2 million in additional rate cuts slated for December 1, 2018.
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