Delivering value amid rising costs

Not long ago, I stopped on my way home to pick up a gallon of milk, a loaf of bread and a candy bar. When the clerk told me the total was $8.44, it gave me pause. Like many of you, I found myself wondering when the basics of everyday life became so expensive.

Out of curiosity, I looked up what that same purchase would have cost in 2016. The answer was $6.48, an increase of about 30%. I also thought about something many of us enjoy from time to time, a Starbucks Frappuccino. In 2016, it averaged about $4.25. Today, it is closer to $6.25, an increase of nearly 47%.
These examples reflect what we are all experiencing. The cost of everyday life continues to rise. Families are working hard to stretch their dollars, and we understand that every expense matters. As your local electric cooperative, we take that responsibility seriously.

We have carefully reviewed the financial needs of your cooperative, and one thing has become clear. Nearly everything has increased except our electric rates. For years, we have worked hard to hold the line, even as our own costs have risen dramatically.

In 2016, the average pole on our system cost $189. Today, that same pole costs $464. The transformer serving your home cost $323 in 2016. Today, it costs approximately $1,540. These are just a few examples of the challenges we face in maintaining and improving your electric system.

Despite these sharp increases, our rates remain well below regional and national averages. When adjustments have occurred in recent years, they were pass-through changes from the Tennessee Valley Authority and did not result in additional revenue for Powell Valley Electric Cooperative.

As we often remind our members, about 80 cents of every dollar you pay goes directly to TVA for the wholesale power we purchase. That means we operate and maintain your entire electric system, including poles, wires, trucks, crews, maintenance, billing and storm response, on just 20 cents of every dollar. To put that into perspective, the average residential bill is $125.05. Of that amount, $100.04 goes directly to TVA, while your cooperative operates on the remaining $25.01.

We have worked diligently to cut costs wherever possible and have absorbed rising expenses for as long as we could. However, continuing to do so is no longer sustainable if we are to maintain the level of reliability and service our members expect and deserve.

Beginning April 1, 2026, overall electric rates will increase by 2.3%. This adjustment includes updates to the monthly customer charge. Residential and small commercial members will see an increase of $4 per month. Large commercial members will see an increase of $10 per month. Industrial members will see an increase of $20 per month.

For the average residential member, the $4 per month increase equates to 13 cents per day. For comparison, 13 cents a day is less than the daily cost of many routine expenses — like bottled water, snacks or a cup of coffee — yet it supports system maintenance, reliability improvements and long-term investment.

At Powell Valley Electric Cooperative, every decision we make is guided by one simple question: What is best for our members and our community? We live here, work here and raise our families here, just like you. We do not take your trust for granted. This adjustment will help ensure we can continue delivering safe, reliable and affordable power today and for generations to come.

-Brad Coppock