Two Lee County homes that use the same amount of electricity can get very different bills, depending on which company runs the lines to the house.
For 1,000 kilowatt-hours this month, a residential member of Powell Valley Electric Cooperative pays $127.59 before taxes, by The Lee Daily Register’s calculation from the co-op’s November rate sheet. An Old Dominion Power customer using the same amount pays $156.46 under current rates, according to the company’s rate application as reported by Cardinal News. If regulators approve Old Dominion’s request as filed, that bill would rise to $193.12.
Treat that as a rough guide. The two figures come from different sources and dates. It is also not clear whether Old Dominion’s figure includes fuel charges added since it applied.
Old Dominion’s request
Old Dominion Power is the Virginia name of Kentucky Utilities. It serves more than 28,000 customers in Lee, Wise, Scott, Russell and Dickenson counties, Cardinal News has reported. On April 30, the company asked the State Corporation Commission for about $19 million more a year in base rates, according to its parent company PPL Corp.’s quarterly report to federal regulators. The request is built on a 10.95% return on equity, and the company wants the new rates to take effect February 1, 2027. A public hearing begins November 12.
The $36.66 monthly increase at 1,000 kilowatt-hours works out to about 23%. The company also asked to raise the basic customer charge from $12 to $15 a month, Cardinal News reported.
The commission’s staff recommended less, according to Cardinal News: about $11.9 million a year, a 9.8% return and no change to the $12 charge. Under the staff’s numbers, the 1,000-kilowatt-hour bill would rise by $23.07, to about $179.53, or roughly 15%. The commission has not ruled.
It would be the second increase in two years. In January 2025, regulators approved a smaller rise that added $17.63 to the average residential bill starting February 1, 2025, Cardinal News reported at the time.
Powell Valley’s bill moves every month
Powell Valley is based in New Tazewell, Tennessee, and buys its power from the Tennessee Valley Authority. It serves parts of Lee, Scott and Wise counties in Virginia and five Tennessee counties. Its rates are set by its own board and by TVA, not by Virginia’s commission, and the TVA fuel charge on its bill changes monthly.
That makes the bill swing. Using the co-op’s monthly rate sheets, The Lee Daily Register worked out the cost of 1,000 kilowatt-hours for each month over the past year, leaving out taxes.
| Rate sheet effective | Customer charge | Price per kWh | Bill at 1,000 kWh |
|---|---|---|---|
| November 2025 | $18.06 | 10.187¢ | $119.93 |
| January 2026 | $18.06 | 10.539¢ | $123.45 |
| March 2026 | $18.06 | 12.271¢ | $140.77 |
| April 2026 | $22.06 | 11.852¢ | $140.58 |
| July 2026 | $22.06 | 10.977¢ | $131.83 |
| October 2026 | $22.06 | 10.191¢ | $123.97 |
| November 2026 | $22.06 | 10.553¢ | $127.59 |
The peak came in March, when TVA’s fuel charge jumped to 4.242 cents a kilowatt-hour. The fixed charge went up in April. The co-op raised its residential customer charge by $4, from $18.06 to $22.06, in what CEO Brad Coppock described as a 2.3% overall increase. About 80 cents of every dollar a member pays goes to TVA for wholesale power, the co-op said. Over the full year, the 1,000-kilowatt-hour bill rose $7.66, or about 6%.
A new line on November’s sheet
Powell Valley’s November rate sheet has a new column. It is labeled “DCRA,” and none of the co-op’s sheets from the previous 13 months had it. It is a credit of a quarter cent per kilowatt-hour for residential and small business members. It knocks $2.50 off a 1,000-kilowatt-hour bill. Without it, November’s bill would have been $130.09.
The sheet does not say what the letters stand for or how long the credit will last, and the co-op’s website does not explain it. At another TVA distributor, Greeneville Energy Authority in Tennessee, DCRA stands for “Demand Cost Recovery Adjustment,” a monthly charge or credit tied to TVA’s costs from the month before. Members with questions can reach Powell Valley through its contact page.
A merger in the background
Old Dominion’s parent is also changing shape. Kentucky Utilities and its sister company, Louisville Gas and Electric, plan to merge into a single company, with LG&E as the survivor. Kentucky regulators approved the merger on September 25, according to the Kentucky Public Service Commission’s order.
That order says the companies asked Virginia’s commission on April 17 to approve the merger. They also asked it to confirm that an exemption Old Dominion holds under Virginia’s electric utility restructuring law would carry over to the merged company. As of September 25, that Virginia case was still pending. Virginia’s commission approved a related request covering the merger’s financing and plan on August 31, the order says.
