Energy Cost Information

Saving Energy and Lowering Bills

There are many factors that can influence a KUB customer’s bill. For electricity and natural gas, a customer's bill can vary from month to month based on the amount of electricity or natural gas used. Factors that impact energy usage include:  

  • Weather, especially how hot or cold it is outside  
  • Individual usage habits 
  • Size and energy efficiency of a customer’s home 

As part of KUB’s commitment to its customers, KUB provides energy savings tips and resources for customers who may have difficulty paying their utility bill. Resources can be found here.

A great way to minimize seasonal cost spikes is by enrolling in Levelized Billing. Customers can learn more here.

 

Natural Gas Costs

KUB purchases natural gas from suppliers and pays interstate pipelines to transport that gas to our service area.

Because market prices for natural gas fluctuate throughout the year, KUB buys natural gas year-round to maintain a reliable supply for its customers while keeping costs as low and as consistent as possible. 

While KUB tries to keep prices low by purchasing natural gas throughout the year, rate changes from natural gas suppliers are beyond KUB’s control. As a not-for-profit utility, KUB passes 100 percent of these increases/decreases onto the customer. 

 

Natural Gas Pipeline Rate Increase

In 2025, Enbridge / East Tennessee Natural Gas (ETNG), the gas pipeline that serves the Knoxville area, filed for a rate increase with the Federal Energy Regulatory Commission (FERC).

Based on current information, the estimated annual impact to KUB is $17.5 million. This estimate may change as the rate case review continues. These costs flow directly into customer bills.

Residential Customer Impact

Preliminary estimates show residential natural gas customer bills will be on average $8.29 higher per month due to the Enbridge / ETNG rate increase:

Commercial Customer Impact

Preliminary estimates indicate the following ranges for commercial natural gas customers due to the Enbridge / ETNG rate increase:

  • Commercial G4 customers can expect an estimated annual increase of 10% to 16% on their bill.
  • Commercial G6 customers can expect an estimated annual increase of 18% to 23% on their bill.

 

KUB Natural Gas Rates

Customer bills also include the cost for KUB to operate and maintain its distribution system—the pipes, equipment, and people needed to safely deliver natural gas to homes and businesses in the community. This is separate from the cost KUB must pay to suppliers and the pipelines. KUB rate changes must be approved by the KUB Board of Commissioners through an open, public process.  

In 2024, KUB's Board of Commissioners approved a 3 percent rate increase on KUB's natural gas rates. This rate increase is set to go into effect in October 2025 and will result in a monthly impact of $1.95 for the average residential customer.

Customers can view current residential natural gas rates here.

Commercial customers can view commercial natural gas rates here.

 

Electric Costs

Tennessee Valley Authority (TVA) produces electricity and sells it to KUB. KUB delivers that electricity to homes and businesses. TVA is KUB’s main provider of electricity aside from a small percentage of renewable energy KUB is permitted to self-generate.

When customers pay their bill, more than 80 cents of every dollar goes to purchase power from TVA. Less than 20 cents of every dollar is kept by KUB to recover the local costs of delivering electricity.

Customers will notice their monthly electric rate change throughout the year. Monthly fluctuations reflect changes in the price of the electricity KUB purchases from TVA. As a not-for-profit utility, KUB passes 100 percent of TVA cost increases/decreases to customers.  

 

KUB Electric Rates

Customer bills also include the cost for KUB to operate and maintain its electric distribution system—the poles, wires, equipment, and people needed to safely deliver electricity to homes and businesses in the community. This is separate from the cost KUB must pay to TVA. KUB rate changes must be approved by the KUB Board of Commissioners through an open, public process.  

In 2024, KUB's Board of Commissioners approved a 3 percent rate increase on KUB's electric rates. This rate increase is set to go into effect in April 2026. This rate increase will result in a monthly impact of $3.85 for the average residential customer.

Customers can view current KUB residential electric rates here.

Commercial customers can view KUB commercial electric rates here.