TVA Offers Distributors That Gave Notice Chance To Rescind
November 3, 2006
TVA will offer five Kentucky power distributors and one Tennessee distributor that have given notice to terminate their power contract an opportunity to rescind the notice and return to their standard TVA power contract without paying additional costs.
The limited-time offer will be open for a 60-day period ending Jan. 10. At the end of that period, distributors will be subject to a reintegration fee if they later decide to rescind their notice.The grace period for waiving this fee does not apply to contract extensions.
The Tennessee Valley Public Power Association, which represents the 158 distributors of TVA power, has approved the offer.
“This offer will provide an opportunity for distributors that have given notice to return to TVA without a reintegration charge,” said TVA President and CEO Tom Kilgore. “TVA and TVPPA leadership believe it would be in the best interests of consumers in the Tennessee Valley for TVA to extend this offer.”
In January 2004, the TVA Board approved a policy under which TVA would no longer plan to meet power supply requirements of distributors that have given notice beyond the end of their current contracts. However, TVA would consider serving returning customers at the standard prevailing rate, plus any additional costs necessary to supply the returning load. Under the new limited-time offer, those additional costs, if any, would be waived.
Distributors that have given TVA notice of contract cancellation are Warren Rural Electric Cooperative Corp. in Bowling Green, Paducah Power System, Princeton Electric Plant Board, Glasgow Electric Plant Board and Monticello Electric Plant Board in Kentucky and Duck River Electric Membership Corporation in Shelbyville, Tenn.
“We appreciate the close working relationship that we have with distributors of TVA power and TVPPA,” Kilgore said. “We look forward to redefining and strengthening our relationship with all our customers in the coming weeks and months.”
TVA is the nation’s largest public power provider and is completely self financed. TVA provides power to large industries and 158 power distributors that serve approximately 8.6 million consumers in seven southeastern states. TVA also manages the Tennessee River and its tributaries to provide multiple benefits, including flood damage reduction, navigation, water quality and recreation.
Media Contact
John Moulton, Knoxville (865) 632-8048
TVA News Bureau, Knoxville, (865) 632-6000
