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Press Mention Chattanooga Times Free Press February 12, 2020

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America's biggest government utility reshapes agreements with local power companies

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The Tennessee Valley Authority approved new principles allowing its 154 municipal and cooperative distributors to generate or purchase up to 5% of their power from sources other than TVA, marking a significant shift in the utility's 87-year history. This change grants local power companies greater flexibility in their long-term agreements with the federal utility.

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America's biggest government utility reshapes agreements with local power companies

February 14, 2020

by

Dave Flessner

| Updated February 14, 2020 at 4:48 a.m.

For the first time in its 87-year history, the Tennessee Valley Authority may soon grant the local power companies that distribute its power the ability to generate or buy power on their own.

Under a set of principles approved Thursday by TVA directors, the federal utility will grant more flexibility to the 154 municipalities and power cooperatives that buy its power and sign new long-term agreements with the federal utility. TVA will allow its distributors the right to buy or generate up to 5% of their power (or 1 megawatt for small distributors) from sources other than TVA.