Tennessee has the 14th lowest retail electricity prices
in the nation. The 2000 state average rate of $56.20/MWh was 16 percent
below the national average retail rate. Tennessee power rates reflect
payment for their high nuclear plant capital investment ($14.5 billion)
that masks the low cost coal (65 percent) and hydroelectric (6 percent)
generation. Coal costs are delivered for nearly 10 percent below the
national average coal costs because of its use of nearby Illinois Basin
and Appalachian coals.
