Cherokee Electric Cooperative customers will notice an increase in their rates beginning Oct. 1. TVA, which supplies power to Cherokee Electric Cooperative, has proposed the rate increase which will be passed on and will increase each customer’s power bill approximately 7.52 percent.

Cherokee Electric, as explained by General Manager Randal Wilkie during the June meeting of the CEC Board of Directors, will need to add about 2 percent to offset local increased in fuel, steel and other everyday usage items with significant price increases caused primarily by the cost of oil.

Excluding taxes, Wilkie said, the average residential power bill of 1,200 kwh would move from $98.72 currently to $107.15 after the increases.

From the financial and statistical report, Wilkie reported that the margin for May was a negative $105,503, which was caused by material cost increases and mild weather in May which caused electricity sales to be off by 10 million kwh, vs. April. This will lower the CEC Year to Date TIER ratio to 2.34, Wilkie said.

“The process of building the new line from the Leesburg substation to Highway 68 which will enable us to split the load going north and south on Highway 68 has begun with our crews working there this week,” Wilkie reported. “The site prep for the new Gosh substation should begin before the July board meeting, also the double circuit running east from the new substation should be completed by mid July.”

Powertech Engineering has begun updating the CEC mapping system, Wilkie said, and the first substation to be updated will be the Gaylesville Substation.

In other business, the board:

-approved 219 projects totaling $1,228,451.74, which is the amount of funds CEC can borrow from RUS (Rural Utilities Service) if necessary.

-agreed to accept bids on an actuarial audit for CEC retirement benefits