Alcoa Electric raised the residential "customer charge" last fall, 2025, by 11.3%.

Now, last fall, the Alcoa Electric Department wants to add to the “energy charge” portion of our bill, Demand Cost Recovery Adjustment.

Alcoa Electric has been around for nearly 70 years. Demand charges have been handled within existing charges to residential customers. From what I was told, demand charges are when TVA charges extra for high usage. High usage times are fairly rare in Alcoa. We might have several days in the winter where it gets really cold or really hot (not sure there were any days in 2025). From what I have been told, Alcoa Electric does not pass on the cost incurred for high demand, and Alcoa Electric has not been hurt financially.

Alcoa Electric thinks this is the time to start adding Demand Cost Recovery Adjustments to our electric bills. In the past 4-5 years, our electric bill has increased by 21.7%, our water/sewer bill by 46.9%, our city property taxes by 24.2%, our homeowners insurance by 52.7%, ground beef up by 55.7%, mayonnaise up by 75.2%, mushroom soup up by 59.2%, etc. You can see comments on the Alcoa Electric Facebook page as to how residents feel about these increased charges.

KUB does not have this charge. Maryville Electric does not have this charge.

Greeneville, TN does have this charge. I'm not exactly sure why, However, it would appear their energy charge is less than Alcoa Electric and adding the Greeneville DCRA rate to the Greeneville energy rate appears to still be less than Alcoa Electric energy charge.

Why does Alcoa Electric feel now is the time? Are they hurting for money with the growth being pushed by the city?