The Tennessee Valley Authority (TVA) created a separate rate structure for data centers, aiming to keep ratepayers’ rates low.
TVA’s board voted Thursday to create a separate rate structure for data centers to cover the costs of the power and infrastructure these buildings require.
Starting October 1st, billing for data centers will increase by an estimated 10 percent, phased over three consecutive fiscal years, according to the TVA.
This means ratepayers will not have to pay for expenses related to increasing data center growth.
Mike Skaggs, TVA interim President and CEO, said the board’s decision puts the company in a position to “meet the Valley’s growing demand while continuing to advance American energy leadership.”
“Thanks to the Board’s strategic focus and dedication of our employees, we’re building the right resources, adjusting rates responsibly and planning for a future that strengthens communities, supports economic growth and delivers the affordable, reliable energy that millions of people depend on,” he said.
On top of this, TVA’s board approved the company’s investment in additional generation and transmission capacity to meet increasing demand in the region.
TVA, America’s largest public utility, projects the region will need to add another 11 to 32 gigawatts of generation capacity to keep up with demand by 2040.
Through Fiscal Year (FY) 2029, TVA is investing more than $13 billion to maintain and expand its grid capacity, including over $1 billion yearly on maintenance to bolster its generation fleet and transmission system.
TVA Chair Mitch Graves said the company’s goal is to preserve “low rates and high reliability for customers.”
“As AI and advanced industries consume more electricity, TVA’s Board is making sure that hardworking American families and small businesses aren’t left carrying the cost,” Graves said.
“By modernizing our rate structure and strengthening American-made energy, we’re advancing our nation’s AI and energy dominance while safeguarding the people we serve,” he added.
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Zachery Schmidt is the digital editor of The Star News Network. Email tips to Zachery at [email protected].
Photo “TVA Board Meeting” by TVA.Â
Gosh and here I thought that the only thing TVA did was pay the administrators outrageous salaries.