KNOXVILLE, TN – Based on the continued operational and financial performance of Tennessee Valley Authority employees this past year and the strength of the Tennessee Valley public power model, the TVA Board of Directors took significant actions at its meeting on Wednesday to further extend support to communities, businesses, and people across the region challenged by the COVID-19 pandemic.
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Key Points –
- Based on continued strong operational and financial performance, the TVA Board approved extending a 2.5% Pandemic Recovery Credit for all customers through Fiscal Year 2022.
- TVA’s diverse power generation and resilient, interconnected transmission system successfully provided reliable energy to the region through some of the highest summer demand in a decade.
- In the past two years, effective wholesale rates have fallen by 6.4%, lower than they were 10 years ago
- TVA continues to build on its leadership in electric vehicle infrastructure development and announced the transition of up to half of its own fleet to electric vehicles by 2030.
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Recognizing ongoing pandemic recovery efforts, the Board approved an extension of the Pandemic Recovery Credit through fiscal 2022 and requested a proposal to explore the potential of a further extension through the following year.
First approved a year ago, the initiative provides a monthly 2.5% wholesale power cost credit to each of the 153 local power companies TVA serves, as well as TVA directly served customers and large customers served by local power companies. For fiscal 2021, the credit will be about $200 million and extending the program through fiscal 2022 is expected to provide an additional $220 million.
The Board also approved the continuation of the Community Care Fund into the new fiscal year, providing up to $5 million in additional TVA funds. This brings the total TVA contribution to $9 million to support groups that continue to help those most in need in local communities.
“TVA was created to benefit the public good and has continued to build on that clear mission,” said Jeff Lyash, TVA president and CEO. “Thanks to the dedication and hard work of our employees, we continue to deliver value to those we serve.
“Because of TVA’s strong operational and financial performance, we have an opportunity and responsibility to use these resources to provide continued support for customers, businesses, and communities.”
Jeff Lyash
The Board also commended the success of TVA and its local power company partners in reliably delivering vital energy to the region during challenging weather conditions in February and over the past three weeks, when TVA met some of its highest summer peak energy demands in the past decade.
“The public power system served by TVA and local power companies is uniquely capable of handling such events through a combination of systematic planning, continually monitoring weather forecasts to anticipate need and investing for the future,” said Lyash. “Such efforts allow us to demonstrate the four dimensions of value that make public power a unique strategic advantage for the region: resiliency, reliability, environmental performance and cost.
“Even under difficult circumstances, we can consistently deliver some of the nation’s lowest-cost, most reliable, and cleanest energy. The diversity of our generation portfolio and resilient transmission system helps ensure the residents and businesses we serve are insulated from the kinds of price spikes and power shortages seen in other parts of the country.”
Media Release/Jim Hopson/TVA Public Relations
