Article: Tennessee Valley Authority to Raise Residential, Commercial Electricity Rates.

Byline: Rebecca Ferrar

Aug. 28--Despite objections from citizens, distributors and special-interest groups, the TVA board of directors Wednesday approved a 7.4 percent rate increase for residential and commercial customers and a 2 percent rate decrease for 1,500 industrial customers.

The increase is effective Oct. 1 and will last for 10 years.

The adjustment will raise $365 million a year, which TVA says it needs to pay for installing expensive air pollution control equipment at its coal-fired plants.

"The cost of clean air is higher than anyone estimated it to be," said TVA Chairman Glenn McCullough Jr. "This 10-year environmental ...

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