Those served by TVA will see an increase of 8% – adding $5.52 a month to the average household bill  – beginning in October.

The Tennessee Valley Authority Board voted to raise the basic power rate on October 1st; however on the other side, officials reportedly expect to cut the fuel adjustment charge for the month, resulting in a savings of nearly $2.00 for the average residential bill, from $66.61 to $64.77. Under a new policy, the utility is adjusting the fuel surcharge monthly instead of quarterly.

TVA,  the nation`s largest public utility, said that the rate hike was necessary to fund a $3 billion liability, which includes bolstering the pension plan, paying for the cleanup of a massive coal ash spill at the Kingston Fossil Plant in East Tennessee, and the funding of capital projects.