Tennessee Valley Authority (TVA) has reached out to the local power companies it supplies electricity to, requesting meetings to discuss potential rate changes amid significant load growth in its seven-state region. In a letter sent earlier this year, TVA highlighted the strain on its system from unpredictable, rapidly scaling demands—particularly from data centers and energy-intensive industries—and expressed the need to adjust its schedule of rates and charges.

The proposals aim to support continued growth while protecting existing customers, including greater rate stability for large manufacturers, a new marginal pricing option, and the possible creation of new customer classes with additional capacity charges for very large users such as AI and data centers.

TVA spokesperson Scott Brooks noted that the agency has been engaged in ongoing discussions with local power companies since sending the February letter, with the proposals continuing to evolve. TVA’s board will make the final decisions on the changes, expected to be presented in August. TVA delivers power through 153 local power companies serving millions of customers across seven states.