The KUB Board of Commissioners gave final approval Thursday to a three-year rate increase for customers.

The first of the electric and water increases will be reflected on residential customers' monthly bills in August 2014, with an additional $1 for electric service and an additional $2 for water service.

The first of the natural gas and wastewater increases will be seen on November 2014 bills, with an additional $1 for natural gas service and an additional $3 for wastewater service.

KUB officials have approved a $868 million budget for the 2015 fiscal year which includes that rate increase.

The budget includes $474 million for energy purchases from TVA and natural gas suppliers to meet the demands of KUB's 440,000 electric and natural gas customers and $168 million for capital improvements, which includes their continuing infrastructure improvements.

The budget provides funding for: $13.5 million for the South Loop natural gas pipeline between the University of Tennessee campus and the KUB Topside Road Gate Station, $13 million for the construction of two new electric substations and other substation improvements, $7 million for the replacement of 11 miles of natural gas pipe, $8 million for the replacement of 2,500 poles for the electric system, $9 million for the replacement of aging water pipe, $28 million for the replacement of sewer main, and $4 million to complete the construction of a new low service pump station for the water treatment plant.