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Electric Rates Reduced for Fourth Time

Combined Rate Reductions Save Customers More Than $4.3 Million Annually
Posted on: September 25, 2019 - 11:35am
Rates Reduced

BRISTOL, VA; December 7, 2019 – BVU approves fourth electric rate cut – saving customers a combined total of $4.3 million annually. Today’s rate action begins the process of reducing the cost of BVU electricity by an estimated $813,844 each year. The decision to once again lower electric rates stems from a strategic partnership with BVU’s wholesale electric provider that reduces wholesale electric rates by 3.1%. Strong financial performance in the electric division allows BVU to pass this savings through to BVU’s customers.

This action is the fourth in a series of recent BVU Board-approved electric rate actions, which include:

  • October 2017: $1,753,308 rate reduction,
  • October 2018: $555,330 rate reduction,
  • December 2018: $1,200,178 rate reduction, and
  • January 2020: $813,844 rate reduction, as approved today.

BVU customers are expected save up to $43 million of community funds over the next 10 years as a result of the rate reduction series.  

“The BVU Board and staff have been able to reduce rates in a way that is rare throughout the utility industry," explains Don Bowman, BVU President & CEO. "These rate reductions are a testament to BVU employees’ commitment to its customers in Washington County, Scott County and Bristol, Virginia. We are pleased to exemplify BVU’s public power model of providing services at the lowest possible cost, and we look forward to additional rate cuts in the near future" 

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 most recent comparison* shows BVU’s projected electric rate of $106.07** per month is estimated to be the 3rd lowest in the Commonwealth of Virginia – cheaper than the rate paid by 98.3% of Virginia households.

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* Source: 2018 Virginia OAG survey on Virginia Residential Electric Utility Rates. **Includes projections regarding TVA fuel costs (VPGC).