Athens Utilities Seeks Another Electric Rate Adjustment, but Public Record Shows Previous Adjustments Since 2018
Athens residents could soon see higher electric bills after the Athens City Council approved submitting another electric rate adjustment to the Tennessee Valley Authority (TVA) for review.
The proposal would increase the monthly residential customer charge by $2 beginning November 1, 2026, with an additional $2 increase proposed for 2027, pending both City Council and TVA approval. According to Athens Utilities, the increases are needed to help offset rising operating costs, material costs, continued system growth, and ongoing maintenance expenses.
During the July 27th presentation, utility officials told the Council that Athens Utilities has experienced approximately 33% customer growth since 2018 and stated that 2018 was the last time rates were adjusted. Officials also said Athens is one of only four TVA distributors in North Alabama that have not had a rate increase since 2018.
However, publicly available City Council records and prior news coverage document electric rate adjustments approved in both 2024 and 2025.
The 2024 Rate Adjustment
In June 2024, the Athens City Council approved a retail electric rate adjustment that increased the residential customer charge by $2 per month while reducing the per-kilowatt-hour energy charge. The adjustment was then submitted to TVA for approval, following the same process outlined for the current proposal.
The 2025 Rate Adjustment
Less than a year later, in April 2025, the Council again approved a retail electric rate adjustment on a 4–1 vote. That proposal included another $2 increase to the residential customer charge, along with corresponding adjustments to the energy charge, before being submitted to TVA.
Although those changes shifted a portion of customers' bills from energy usage to the fixed monthly customer charge, they modified the retail electric rate schedule.
A Topic That Has Drawn Public Attention Before
This is not the first time electric rate adjustments have generated significant public discussion. During the 2025 proposal, the issue prompted extensive debate at City Council meetings and among residents. Questions were raised about the timing of the increase, the impact on customers, and the reasoning behind shifting more of the electric bill to the fixed monthly customer charge. The proposal ultimately passed on a 4–1 vote after discussion by council members and utility officials.
The TVA Approval Process
Athens Utilities also emphasized that the City Council does not have final authority over electric rates.
Instead, any rate adjustment approved by the Council must be submitted to TVA for review and approval before it can take effect.
The current proposal will follow that same process. According to the presentation, TVA could approve both proposed increases, approve only one, or decline to approve either.
Comparing the Statements to the Public Record
The current presentation states that 2018 was the last time rates were adjusted, while the public record reflects City Council approval of electric rate adjustments in 2024 and 2025 that were subsequently submitted to TVA under the same approval process.
Whether those earlier adjustments were intended to be revenue neutral by lowering energy charges while increasing the fixed customer charge is a separate question. What is documented is that changes to the retail electric rate schedule occurred after 2018.
As Athens Utilities moves forward with another proposed adjustment, residents may ultimately decide for themselves how to interpret the statement that no rate adjustments have been made since 2018 in light of the City's own publicly documented actions in 2024 and 2025.
