Tennessee Valley Authority · 153 local power companies · commercial accounts

Is your TVA commercial bill right?

TVA did not raise its base rate for fiscal 2027. The fuel cost adjustment did it anyway: on general power accounts it jumped about 27 percent from October to November 2026, from 2.117¢ to 2.695¢ per kWh at Middle Tennessee Electric and from 2.184¢ to 2.780¢ at Volunteer Energy, and it moves again every month, with a different number stated for each of the 153 local power companies that actually send your bill. Underneath it, TVA's general power schedule bills you at least 30 percent of the highest demand you set in the last twelve months, or of a contract demand you may have signed years ago, whichever is higher. Nobody at your local power company checks whether your bill reconstructs from its own schedule. OptivAI does, every cycle, with a dedicated AI Energy Expert on your account, a rate-plan verdict each month and an Optimization Roadmap built from how your building actually runs. $99 per account per month. No equipment, no audit, nothing to install.

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Tariff basis: TVA standard general power schedules as adopted by local power companies; rate examples from Middle Tennessee Electric's schedule effective November 2026; fuel cost adjustments from TVA statements of amounts for November 2026. Last reviewed by OptivAI on November 11, 2026.

The two questions every TVA business owner eventually types

1. Is my TVA bill right?

A TVA-area commercial bill has three authors. TVA sets the wholesale rate and the schedule structure and states a fuel cost adjustment for each local power company every month. Your local power company (a municipal utility or an electric cooperative) sets its own customer, demand and energy charges within that structure and sends the bill. And the schedule itself sets the breakpoints: 50 kW and 15,000 kWh between GSA Part 1 and Part 2, 1,000 kW between Part 2 and Part 3, 5,000 kW above that. At Middle Tennessee Electric in November 2026, for example, GSA Part 2 is a $51.50 customer charge, $14.28 per kW over 50 kW, 9.990¢ for the first 15,000 kWh and 5.148¢ after, plus a fuel cost adjustment of 2.695¢ and 2.667¢ on those two blocks. Your company's numbers are different, and so is its fuel cost adjustment.

OptivAI rebuilds the bill from your local power company's filed schedule each cycle, applies the fuel cost adjustment TVA stated for that company and that month, applies the 30 percent demand floor, the 85 percent kVA rule and any contract demand, and compares the result with what was charged. Anything that does not reconstruct is flagged, in plain language, in your portal.

2. Am I on the right TVA rate plan?

TVA's general power structure gives most commercial accounts a small set of real choices. Below 50 kW and 15,000 kWh you are on GSA Part 1, energy only. Cross either breakpoint and you move to Part 2, where a demand charge appears and the energy charge drops after 15,000 kWh. Above 1,000 kW you are on Part 3 or, where your company offers it, TDGSA time-of-day, which prices on-peak demand and energy separately with an on-peak window that moves between summer and winter. Manufacturers above 5,000 kW have MSB. Many accounts also carry a contract demand that is years old and sets a floor the schedule will not let them fall under.

Every cycle OptivAI compares your actual usage against each schedule your local power company offers for your size and delivers a verdict: stay, or switch and why. Where a switch or a contract demand reset makes sense, you see the projected difference, labelled Projected until your own bill proves it. Your local power company makes the change; we make sure you know to ask for it.

The TVA rate schedules we read

These are TVA's standard commercial schedules as adopted by its local power companies, in OptivAI's TVA tariff catalog. Dollar figures below are Middle Tennessee Electric's, effective November 2026, as one example; every company publishes its own. Time-of-day variants, the GSB and GSC schedules above 5,000 kW, and the new data center schedules (DCA, DCB) are reviewed account by account.

Schedule	Who it is for	What we watch
GSA Part 1	General Power. Demand 50 kW or less and 15,000 kWh or less. MTE example: $24.60 customer charge; 9.693¢ per kWh; fuel cost adjustment 2.695¢ per kWh in November 2026. Three-phase service carries a special minimum.	Whether either breakpoint was crossed: 15,000 kWh in a month moves an account to Part 2 even if demand never reaches 50 kW.
GSA Part 2	General Power. 51 to 1,000 kW, or more than 15,000 kWh. MTE example: $51.50; first 50 kW no charge; $14.28 per kW over 50; 9.990¢ first 15,000 kWh and 5.148¢ additional; fuel cost adjustment 2.695¢ and 2.667¢. Contracts of at least one year required above 50 kW.	The 30 percent demand floor against the 12-month high or contract demand; the 20 percent minimum bill; power factor, because billing demand is the higher of kW or 85 percent of kVA.
GSA Part 3	General Power. Over 1,000 kW to 5,000 kW contract demand. MTE example: $161.00; $13.37 per kW for the first 1,000 kW; $13.33 per kW over 1,000; 5.439¢ per kWh; fuel cost adjustment 2.667¢; plus $13.33 per kW for any demand above the higher of 2,500 kW or contract demand.	The contract demand itself, which sets both the floor and the excess charge; whether TDGSA would price the same load lower.
TDGSA	Time-of-Day General Power (where offered). Contract demand over 1,000 kW to 5,000 kW. On-peak demand and maximum demand billed separately; on-peak and off-peak energy, with off-peak priced in 200-hour blocks per kW. On-peak at EPB, for example, is weekday afternoons April through October and weekday early mornings November through March; the on-peak and off-peak billing demands each have a 30 percent floor.	Twelve real months modelled before we recommend it; the on-peak window moves twice a year.
GSB / TDGSB	General Power above 5,000 kW to 15,000 kW, standard and time-of-day. Your local power company quotes these through its key accounts group rather than its posted schedule.	Reviewed account by account with the company's current schedule in hand.
MSB / TDMSA	Manufacturing Service for qualifying industrial accounts. Lower fuel cost adjustment than general power (2.497¢ on MSB at Bristol in November 2026 against 2.758¢ on GSA Part 1).	Whether a general power account with manufacturing load qualifies; the difference is on every kWh.

Each local power company adds its own charges and taxes after the schedule and some publish their fuel cost adjustment under a different name (Middle Tennessee Electric calls it the TVA Fuel Cost Adjustment, Gibson Electric calls it a Power Cost Adjustment). We reconstruct your bill from your own company's current schedule and your own statement in the first cycle.

Billing demand on TVA schedules: a 30 percent floor with a 12-month memory

On GSA Part 2 and Part 3 the billing demand for any month is the highest 30-minute average of the month, but never less than 30 percent of the higher of your contract demand or the highest billing demand you set in the preceding 12 months, and never less than 85 percent of your kVA. The language is TVA's standard schedule, so it reads the same at every local power company; the dollar figure attached to it does not.

30%Floor under billing demand: 30 percent of the higher of contract demand or the highest billing demand of the preceding 12 months.

85%Billing demand is the higher of metered kW or 85 percent of metered kVA (plus 10 percent of kVA over 5,000). Poor power factor is billed as demand.

20%Separate Part 2 minimum bill: 20 percent of the over-50 kW demand charge, applied to the 12-month high or contract demand, every month.

2,500 kWOn Part 3, demand above the higher of 2,500 kW or contract demand carries an additional per-kW charge ($13.33 at MTE) on top of the demand charge.

Because the floor keys off a contract demand as well as a measured one, the Optimization Roadmap for a TVA-area account usually starts with a question nobody has asked in years: what is your contract demand, and does your building still need it? A contract signed for a tenant or a process that left can hold a bill up indefinitely. OptivAI tracks the 12-month high month by month, shows you which half hour set it, flags power factor when kVA is doing the billing, and tells you when a contract demand reset or a schedule change would do more than any equipment.

What rides on top of the rate

The schedule is only part of the price. These are the adjustments and structural facts that move a TVA-area commercial bill in 2026, each read from the local power company's statement or TVA's board actions, with the date it took effect.

Fuel cost adjustment

Set by TVA every month from forecast fuel and purchased-power costs, corrected for prior over- or under-collection, and stated separately for each local power company and each schedule. November 2026 general power: 2.695¢ (MTE), 2.780¢ (VEC), 2.758¢ (BTES) per kWh, each up about 27 percent from October. It changes on the first of every month.

TVA wholesale base rate

No increase for fiscal 2027 (from October 1, 2026), after 4.5 percent in 2023 and 5.25 percent in 2024. The cumulative increase sits just under the 10 percent threshold that would let local power companies reopen their wholesale contracts.

Local power company charges

Customer, demand and energy charges are set by each of the 153 companies within TVA's structure, and change on their own schedules; MTE's current schedule is effective November 2026. Some companies also add their own power cost or distribution adjustments.

Contract demand

Not a rider, but it acts like one: the 30 percent floor and the Part 3 excess charge both key off it. It is set by contract, not by the meter, and only a request to your local power company changes it.

Data center rate class (Oct 1, 2026)

New DCA and DCB schedules move data centers out of the manufacturing class, phased in over three fiscal years with an average bill impact TVA puts at about 10 percent, plus a capacity commitment charge on new or expanded data center load above 5 MW. Does not apply to general power accounts; it exists to keep that load from being priced into yours.

What is pending

Nothing rate-related is on file for general power schedules as of this review. The TVA board held its last 2026 meeting on November 10 and does not meet again until February 2027; two directors' terms have expired and the board may lack a quorum until nominees are confirmed, which would delay any future rate action. Your local power company's board can still act on its own charges.

The TVA landscape, as of this review

Securing your future means watching what the regulator and the utility are doing before it reaches your bill. This is what we are watching for TVA accounts right now.

Aug 20, 2026The TVA board approved the fiscal 2027 budget with no wholesale base-rate increase, adopted the Integrated Resource Plan, and approved a new data center rate class effective October 1, 2026, phased in over three fiscal years with a capacity commitment charge on new data center load above 5 MW. (TVA, AL.com)
Oct 1, 2026Fiscal 2027 began; the data center schedules and capacity commitment charge took effect; local power companies posted October schedules. MTE's October general power fuel cost adjustment was 2.117¢ per kWh. (Middle Tennessee Electric rate schedule)
Nov 1, 2026The November fuel cost adjustment took effect, up about 27 percent from October on general power schedules: 2.695¢ at MTE, 2.780¢ at VEC, 2.758¢ at BTES, with lower amounts on manufacturing schedules. Each company's amount is on its own TVA statement. (MTE, VEC, BTES statement of amounts)
Nov 10, 2026The TVA board held its final 2026 quarterly meeting in Knoxville with no base-rate action; base rates stay flat for the fiscal year while fuel costs are expected to lift winter bills. Two directors' terms have expired and the board may lack a quorum until the Senate confirms nominees; the next scheduled meeting is February 2027. (Knoxville News Sentinel, WSMV)
Dec 1, 2026The December fuel cost adjustment posts. We apply each month's stated amount for your local power company the month it takes effect and show you the change on your account. (VEC fuel cost history)

Reviewed by OptivAI on November 11, 2026. Local power company schedules and TVA's monthly statements of amounts are re-checked monthly; TVA board actions are tracked separately from local power company changes, and one company's fuel cost adjustment is never applied to another's bill.

Your TVA Energy Fingerprint

No two buildings bill alike, and an industry average is not your building. Over twelve cycles OptivAI builds your account's Energy Fingerprint from your TVA data and the facility profile you give us at onboarding: operating hours, major equipment, load drivers and goals. On a TVA local power company that means learning the 30-minute peaks that set your 12-month high, your kVA against the 85 percent rule, how your local power company prices TVA's standard schedule, and whether GSA Part 2 or Part 3 fits.

An audit looks once. A Fingerprint learns. It is proprietary to your account, it lives in your portal, and it is the reason your Optimization Roadmap is specific to how your building runs instead of a list of generic tips.

Cycle 1Your first bill rebuilt and verified, your rate-plan verdict, and a Starting Roadmap. The Fingerprint begins.

Cycles 2–11Every cycle adds a season, a peak, a rider change. The portal shows your Fingerprint Progress and the Roadmap sharpens with it.

Month 12Your full Optimization Roadmap, prioritized by impact and specific to your account. Each item is labelled Projected until your TVA bill proves it.

Measured on the bill, not on a spreadsheet

Actual client, Alabama Power territory

23.2%

Bill reduction, $4,573 a month, verified on the utility bill. A commercial account on a closed schedule, exactly the kind of account where the right answer took a full reconstruction, not a rule of thumb. The same reconstruction runs on every TVA schedule.

Across 25 years of commercial energy work

10–20%

In rate and billing savings typically identified by these roadmaps. For your account it is Projected until your own TVA bill proves it, and we label it that way.

TVA questions we are asked

How do I know if my TVA commercial bill is correct?

Your bill comes from your local power company (Middle Tennessee Electric, Nashville Electric Service, EPB, KUB, MLGW, Huntsville Utilities or one of the other 153 distributors), on TVA's standard schedules with that company's own charges, and with the TVA fuel cost adjustment for the month. OptivAI rebuilds each bill from the local power company's filed schedule for your account (GSA Part 1, 2 or 3, TDGSA, GSB or MSB), applies the fuel cost adjustment TVA stated for that company and that month, checks the billing demand against the 30 percent floor and the 85 percent kVA rule, checks the 15,000 kWh and 50 kW breakpoints, and compares the result line by line with what you were charged. Anything that does not reconstruct is flagged in plain language every cycle.

Am I on the right TVA rate plan for my business?

Every cycle OptivAI compares your actual usage and demand against the schedules your local power company offers for your size and delivers a verdict: stay, or switch and why. Common questions are whether a GSA Part 2 account that has crossed 1,000 kW should be on Part 3 or TDGSA, whether a contract demand set years ago is now the floor under your bill, whether a building with evening and weekend load would do better on time-of-day, and whether a manufacturing account qualifies for MSB. Projected differences are labelled Projected until your own bill proves them.

Does TVA have a demand ratchet?

Yes, a 30 percent one with a 12-month memory. On GSA Part 2 and Part 3 the billing demand for any month can be no less than 30 percent of the higher of your contract demand or the highest billing demand you set in the preceding 12 months. Billing demand is also the higher of your metered kW or 85 percent of your kVA, so poor power factor raises it. On Part 2 there is a separate minimum bill of 20 percent of the over-50 kW demand charge applied to that same 12-month high. And on Part 3, any demand above the higher of 2,500 kW or your contract demand carries an additional per-kW charge. A contract demand you no longer need is the most common thing we find holding a TVA bill up.

Why did my fuel cost adjustment jump in November 2026?

TVA sets the fuel cost adjustment every month from its forecast fuel and purchased-power costs, corrected for prior over- or under-collection, and states a specific amount for each local power company. For November 2026 consumption the general power factor rose about 27 percent from October: 2.117¢ to 2.695¢ per kWh at Middle Tennessee Electric, 2.184¢ to 2.780¢ at Volunteer Energy Cooperative, 2.758¢ at Bristol Tennessee Essential Services. Your company's number is on its own statement and is not the same as its neighbor's. OptivAI applies the stated amount for your company and your month, never a regional average.

Did TVA raise rates for 2027?

Not the base rate. At its August 20, 2026 meeting the TVA board approved the fiscal 2027 budget without a wholesale base-rate increase, after increases of 4.5 percent in 2023 and 5.25 percent in 2024. It did create a separate data center rate class effective October 1, 2026, phased in over three fiscal years with a capacity commitment charge on new data center load above 5 MW. Your local power company can still change its own distribution charges, and the fuel cost adjustment changes every month. OptivAI reads your company's current schedule, not TVA's headline.

What is a TVA Energy Fingerprint?

Your Energy Fingerprint is OptivAI's 12-month model of how your TVA account uses and is billed for electricity, built month by month from your utility data and the facility profile you give us at onboarding. On a TVA local power company that means learning the 30-minute peaks that set your 12-month high, your kVA against the 85 percent rule, how your local power company prices TVA's standard schedule, and whether GSA Part 2 or Part 3 fits. Your Starting Roadmap arrives in your first cycle and sharpens every month; at month 12 the Fingerprint becomes your full Optimization Roadmap, specific to your account and labelled Projected until your bill proves it.

How much does OptivAI cost for a TVA account?

$99 per utility account per month for one to five accounts, $89 per account at six or more, on a 12-month term billed monthly. No equipment, no installation, no shared-savings split. A Starting Roadmap in your first cycle and the full Optimization Roadmap at month 12.

Do you need my local power company login?

No. You connect your account through a read-only utility connection or upload your bills. OptivAI never sees or stores a utility login.

Is it worth $99 to make sure your company's energy future is secure?

Verifying the present. Reducing your dependence. Securing your future.

$99per TVA account, per month

A dedicated AI Energy Expert on your account from the first cycle. Card, bank or invoice. No equipment, no contract to negotiate, and the savings belong to you.

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