Changes to Your Electric Bill

There will be a retail rate adjustment of approximately three percent beginning October 2017. This increase is necessary to cover the cost of providing service, such as meter installation, maintenance, infrastructure including poles and transformers, upgrades to meet customer growth, tree trimming, payment processing, postage and customer service.

In addition, the Tennessee Valley Authority (TVA) is implementing a rate adjustment of 1.5 percent this October.

With these changes, residential customers will see an overall increase of approximately $7 on their monthly bill. That’s based on 1,300 kilowatt hours of usage per month.

Frequently Asked Questions

Why are energy rates increasing?

NES needed to implement an increase for these reasons:

  1. Powering a growing economy. Nashville is evolving along with the customers we serve. But, one thing remains steadfast. Every decision we make is focused on providing you with safe, reliable power that supports growth and new jobs. To meet increased power demand, we must build and upgrade infrastructure.
  2. Maintaining reliable electric service. NES continues to focus on safety and reliability through regular system maintenance and modernizing the grid by replacing aging equipment, such as older power poles and transformers.
  3. Investing in technology. NES has a plan to meet the growing needs of Middle Tennessee while also looking for ways to cut costs such as implementing automated meter reading routes with the installation of AMI (Advanced Metering Infrastructure) meters. We’ve also reduced purchased power costs by approximately $2.5 million annually through our Peak Load Management program. 

What is the amount of the approved rate adjustment?

Beginning October 2017, there will be a retail rate adjustment of approximately three percent. Residential customers will see this increase reflected in the service charge, which is necessary to cover the cost of providing service. In addition, the Tennessee Valley Authority (TVA) is implementing a rate adjustment of 1.5 percent.

 

What is the impact of the rate adjustments on my bill?

A typical residential customer will see an overall increase of approximately $7 on their bill. That’s based on 1,300 kilowatt hours of usage per month.

 

What is the monthly service charge and why is it increasing for residential customers?

The monthly service charge helps pay for recurring costs related to providing you with electric service, such as meter installation, maintenance, infrastructure including poles and transformers, tree trimming, payment processing, postage and customer service.

 

Effective October 2017, the service charge will change to a tiered approach which has three pricing levels, known as “tiers,” based on how much energy you use. During a rolling 12 month period, your highest month’s energy usage will determine which tier you fall in and what your service charge will be for that month.

 

Kilowatt Hour (kWh) Usage       
Monthly Service Charge
Tier 1        
0-500 kWh
$13.50
Tier 2
501-4000 kWh
$16.90
Tier 3
More than 4000 kWh
$31.40

 

For example, if your highest usage is 400 kWh of energy for a rolling 12 month period, it falls within tier 1, so your service charge for that month would be $13.50.

 

If you’ve used 800 kWh during a rolling 12 month period, your service charge for that month would be based on the tier 2 charge which is $16.90.

 

Anything over 4,000 kWh would be considered a tier 3 service charge in the amount of $31.40.

 

Is the rate adjustment the same for all customers?

The rate adjustment varies by customer class (i.e., residential, small commercial, industrial, etc.) and usage. In other words, we attempt to match the costs to provide service to the prices customers pay based on the most recent cost-of-service study. NES allocates rate adjustments to customer classes relative to how NES recovers its costs.

 

Didn’t NES just raise rates?

The last NES rate increase was in October 2013. Part of our business model is to implement rate adjustments every three to five years in order to continue focusing on safety, meeting the growing needs of Nashville, carefully investing in technology and replacing aging equipment for improved reliability.

 

How can I better manage my energy bills?

You can save money with tips and tools to lower your energy usage.

  • Take an easy do-it-yourself audit online and receive a free energy-saving kit in the mail.
  • Use our PowerWise Bill Analyzer for cost-saving recommendations tailored to your energy usage.
  • With Balanced Billing, you can budget for predictable energy bills throughout the year based on your average energy usage. 

What do our energy rates and charges pay for?

Approximately 80 cents of every dollar that comes into NES goes directly to TVA to pay for the power we purchase. The remaining amount goes to cover the various costs for operations, maintenance and infrastructure of the system, upgrades to meet customer growth and emergency & storm repair.