By Alyssa Schnugg
A new utility bill rate hike will go into effect Oct. 1, but Oxford Electrical Department Superintendent Rob Neely said most residential customers won’t notice too much of a change.
Neely announced the increase during Tuesday’s regular Oxford Board of Aldermen meeting.
The Tennessee Valley Authority will boost electric rates by another 1.5 percent in October. The TVA directors approved the rate hike in August as part of TVA’s $10.7 billion budget.
Neely said the wholesale rate increase will cause about a $1.84 average increase for the residential customers.
“However, TVA fuel costs are down which negates some of the effects of that increase,” Neely said.
Temperature extremes and heavy rainfall drove revenue higher than the previous year. Meanwhile, fuel costs were down – due in part to added hydroelectric power from the heavy rain.
The current rate increase is expected to bring in $199 million in revenue.
TVA supplies the power to local power companies, like OED and North East Mississippi Power Electrical Association.