TVA Approves Budget, Rate Hike

HUNTSVILLE, Ala. (AP) -- The Tennessee Valley Authority plans a single-digit increase in power rates under a budget approved by the board of directors.

The board for the nation's largest public utility voted unanimously to approve the $9.7 billion spending plan for the next fiscal year.

The plan accounts for expected increases in costs for fuel -- specifically coal -- and purchasing power from other sources during periods of high demand.

President Tom Kilgore told the board that the exact amount of a rate increase would be announced after he consults with various customers of the utility.

(Copyright 2007 by The Associated Press. All Rights Reserved.)