Federal utility OKs fixed fee on power, lower variable fee

MUSCLE SHOALS, Ala. – The federal Tennessee Valley Authority will charge its utilities a fixed fee that will likely be passed on to customers, no matter how much energy they use.

The decision by the TVA’s board on Thursday is upsetting advocates for ratepayers and green energy, who say it will penalize people who turn off their lights or use renewable energy to save on bills.

The TVA says it is offsetting the fixed fee it needs to maintain the power grid with an equal reduction of about a half-cent per kilowatt-hour in the variable wholesale rate for electricity.

The Southern Alliance for Clean Energy says the rates in October will harm vulnerable residents and diminish green energy progress. Also opposed are Nashville Mayor David Briley, the Tennessee Small Business Alliance and the NAACP.