Members of NGEMC will see an increase in electric rates beginning Oct. 1. The average residential member will pay about $11.18 per month more for energy before taxes.
The Tennessee Valley Authority (TVA) recently announced a 4.5% increase to the wholesale rates it charges NGEMC for energy. TVA had indicated to its utility customers that a wholesale rate increase would be coming in October 2024; however, the TVA board and staff elected to fast-track the increase at their August meeting with no notice to impacted utilities. This unexpected increase will be in addition to the 2.5% wholesale rate increase resulting from TVA’s decision to suspend the Pandemic Relief Credit (PRC) that was initially implemented in 2020.
As announced at the 2023 Annual Meeting, for the first time in six years, NGEMC will implement a 2.82% local average retail rate adjustment in response to the rising cost of materials. For example, the price of electric wire has increased by 180% while the price of overhead transformers has increased 158% percent. Though we work constantly to lower expenses and implement other savings, a local rate adjustment is necessary to maintain financial stability. The local rate adjustment combined with the TVA wholesale increases will raise power bills for the average residential member by a total of 7.28%.
NGEMC emphatically disagrees with TVA’s decision to hike wholesale rates on an accelerated timeline. Furthermore, NGEMC has voiced that the members and citizens of the local utilities across TVA’s service area should not be expected to fund the traditional, exorbitant TVA bonuses in November ($161 million in 2022). The last 12 months have included subpar transmission reliability, rolling blackouts, enormous fuel costs passed through to members, and now rate increases all while inflation has hit the average citizen hard.
NGEMC's current contract (executed in 1976) requires the co-op to purchase 100% of its wholesale power from TVA with a five-year exit clause. NGEMC continues efforts to obtain flexibility to buy power from other potential suppliers; however, TVA has refused to negotiate.
North Georgia EMC is an equal opportunity provider and employer. The non-profit electric cooperative serves over 104,000 households, businesses, and facilities in Northwest Georgia.
