Conservation and more nuclear power will enable TVA to keep rates low... says TVA in the wake of their largest rate hike in 30 years.
Conservation: TVA is working to slow the current rate of growth in the region's power demand by providing opportunities for residential, business and industrial consumer groups to use energy more efficiently. In the short term, TVA's goal is to reduce the growth in peak demand by up to 1,400 megawatts -- more than the amount generated by one nuclear power unit -- by the end of the 2012 fiscal year.
Nuclear: The utility is also emphasizing nuclear power. Last year it spent $1.8 billion to restart Browns Ferry Unit 1, which added 1,000 megawatts to the system. It also plans in 2010 to increase production at Browns Ferry by 300 megawatts. By 2013, it expects to expand generating capacity by 1,100 megawatts with Watts Bar Nuclear Unit 2.
What is missed often in such analysis is that higher prices are desirable with respect to stimulating conservation efforts.
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