Sep 19 - McClatchy-Tribune Regional News - Dave Flessner Chattanooga Times/Free Press, Tenn.

Power bills for most electric users will jump by nearly 20 percent next month, but major commercial and industrial customers will face even bigger increases, EPB said today.

EPB President Harold DePriest said the 69 biggest commercial and industrial electricity users in Chattanooga will see rate increases from 25 percent to 39 percent, effective Oct. 1.

"It's going to be hard on some businesses," Mr. DePriest told EPB directors today. "I am especially concerned about smaller companies and those who are on the edge."

TVA is boosting its wholesale rates by 3 percent and increasing its fuel cost adjustment by 17 percent on its standard rates. That should cost the typical residential customer of EPB about $20 more a month, starting in October, Mr. DePriest said.

But industrial or commercial customers with discounted rate packages will see bigger percentage impacts from the fuel-cost adjustment. TVA is adding the same per kilowatthour charge to all customers for its fuel-cost adjustment across all payment programs. Customers with discounted rates under programs that interrupt power deliveries during peak demand periods will end up paying a bigger percentage increase under the new fuel cost adjustment than do residential power users.

In one instance, Mr. DePriest said, an industrial customer could end up paying as much as 57 percent more for electricity in October.

"In the past, major power users tended to get better rates, but in this case they are going to end up being hit harder," Chattanooga Manufacturers Association President Ray Childers said. "It's going to hurt, but we'll just have to find ways to live with it."

TVA is boosting its overall electricity rates by more than $2.5 billion on Oct. 1 to offset soaring costs for coal, natural gas and purchased power.

Read more in tomorrow's Chattanooga Times Free Press.

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