97.6% of VA Households Pay More

BRISTOL, VA; December 7, 2018 – TVA recently approved a third BVU electric rate cut – saving customers a total of $3.5 million annually. Recent rate actions include last year’s $1.75 million rate reduction, plus offsetting a wholesale rate increase of more than $555,000 this October. Most recently, BVU implemented a nearly $1.2 million rate cut, effective this month.

BVU residential customers will save up to $35 million of community funds over the next 10 years as a result of the rate reduction trilogy.  

“The Board of Directors had the rare opportunity to reduce rates as 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 reductions are in keeping with BVU’s public power model of providing services at the lowest possible cost."

Each year, the Virginia Office of the Attorney General (OAG) prepares a survey on Virginia Residential Electric Utility Rates. The comparative report outlines average monthly utility costs for a benchmark residential customer using 1,000 kWh. The July 2018 preliminary comparison shows BVU’s electric rate of $112.03 per month is among the lowest in the state – cheaper than the rate paid by 97.6% of Virginia households to be more precise. Virginia utility costs vary widely, with some communities paying 31% more than BVU customers ($146 per month) for the same kWh consumption.

Following this December’s most recent rate reduction, that same 1,000 kWh customer could anticipate paying only $107.74^* per month. This makes BVU electric rates more cost effective than an anticipated 98.1% of all other residential electric costs in the Commonwealth. This projection translates to annual utility costs that are the fourth cheapest electric rates in Virginia – $466 cheaper than some other Virginia residents pay. 

“The BVU Board and management have seized this opportunity to stabilize the cost of living in the communities we serve. We are pleased to partner with TVA on implementing these rate reductions while the vast majority of the utility industry continues to raise rates," continues Bowman.

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^{*Includes projections regarding TVA fuel costs (VPGC).}