Tennessee

Why is it like this in Tennessee?

Tennessee's electricity is supplied almost entirely by TVA, which serves roughly 10 million customers across seven states. TVA executed a 5.25% rate increase in August 2024 — its largest in more than a decade — and has directed roughly 90% of its $4.6 billion capital budget toward fossil fuel generation, tying rate stability to natural gas prices. At current prices, gasoline and electricity are close in Tennessee, with electricity holding a clear per-mile advantage over gasoline in Tennessee at the January 2026 baseline — the TVA rate increase has narrowed the gap somewhat, but electric mode remains meaningfully cheaper.

In the news · Tennessee

• TVA Executes the Largest Electric Rate Increase in More Than a Decade, While Providing the Least Amount of Information of Any Major Utility

  Southern Alliance for Clean Energy · Apr 1, 2025

  Documents TVA's August 2024 5.25% rate increase — the largest in over a decade — directly affecting Tennessee's ~13.12¢/kWh rate and PHEV electric-mode costs for the state's millions of TVA customers.

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  Fossil fuels are 90% of TVA's capital expenditures next year — and you're paying for it

  WPLN News (Nashville Public Radio) · Sep 10, 2024

  Roughly 90% of TVA's $4.6 billion FY2025 capital budget goes to fossil fuel plants and pipelines — the largest gas buildout of any U.S. utility this decade — signaling sustained TVA rate increases ahead that will raise Tennessee PHEV electricity costs.

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  Trump megabill could make Tennessee electricity prices surge as early as next year

  WPLN News · Jun 6, 2025

  Potential federal policy changes — clean energy credit rollbacks in the reconciliation bill — could accelerate TVA rate increases by forcing more expensive generation to fill gaps, a forward-looking risk for PHEV electricity cost economics in Tennessee.

Curated coverage of Tennessee's EV/PHEV cost, policy, and infrastructure story. External links open in a new tab.

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