By Bill Grubb

ROGERSVILLE — The price of electricity Holston Electric Cooperative (Holston EC) purchases from TVA is increasing and that will result in higher monthly electric bills, according to Holston EC General Manager Larry Elkins.
    On August 20, the TVA board voted to increase wholesale electricity prices, beginning October 1, by approximately 20 percent.  According to TVA officials, the rate hike is needed primarily to offset higher fuel costs associated with the generation of electric power.   
    “Every penny of the rate increase announced by TVA will go back to TVA for power costs,” Elkins said.  “The average residential customers of Holston EC will see an increase of about 17 percent on their power bills, depending on their individual energy use.”
    According to Elkins, the Holston EC board recently adopted an operating budget for the upcoming year based on no rate increase.
    “More than 86 cents of every dollar that is paid to Holston EC goes to TVA for power cost,” he explained.  “We operate on less than 14 cents out of the dollar and there is no way to absorb the increased power cost.”
    In addition to increased fuel costs, continuing drought conditions have reduced the amount of inexpensive hydropower TVA is able to generate, forcing the utility to purchase power at market prices.    
    “As a distributor of TVA power, when higher prices force TVA to increase rate, we must pass those costs along to our customers.   Holston Electric Cooperative receives no additional revenue from this rate increase,” Elkins said.