TVA approves 2.5% rate credit

NASHVILLE, Tenn. – Today the TVA Board of Directors approved a special $200 million Pandemic Relief Credit for the coming fiscal year. The 2.5% base rate credit will begin in October and remain in effect through most of 2021 for local power companies – including electric cooperatives – served by TVA.

“On behalf of Tennessee’s electric cooperatives, we applaud TVA’s decision to provide $200 million in Pandemic Relief Credits,” said David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “Electric co-ops and the homes, businesses and communities we serve face extreme challenges as a result of the COVID-19 pandemic. The region’s economy is fragile, and the future remains uncertain. Today’s announcement is a positive move that will provide needed relief for many. Co-ops exist to provide power, but in reality, we exist to serve our consumers and our communities. As our wholesale power provider and public power partner, it is essential that TVA shares our vision for reliable power, affordable rates and a vibrant Tennessee economy. We appreciate TVA for providing these resources that will assist the entire region.”

“The continued impact of this pandemic on our communities is unprecedented and creates continued economic uncertainty,” said Jeff Lyash, TVA president and CEO. “Because of the TVA team’s strong operational and financial performance under challenging circumstances this past year, we have an opportunity and responsibility to use TVA’s resources and expertise to provide continued support for customers, businesses and communities.”