TVA Board Approves Program To Enhance Economic Development

October 30, 2008

NASHVILLE, Tenn. – The TVA Board today approved a new economic development initiative that will offer incentive awards to existing industries that remain in the Tennessee Valley, increase their capital investment, add quality jobs and use energy efficiently. 

Under the Valley Investment Initiative, TVA and local distributors of TVA power will provide an incentive award to existing companies in the Valley that demonstrate a multi-year commitment to sustained capital investment, the creation of quality jobs, compatible and efficient power use and a commitment to remain in the TVA region.

Minimum qualifications for industries to be eligible for an incentive award will include investing a percentage of their facilities’ value in their Valley operations annually and meeting minimum workforce and monthly power demand requirements.

Meeting at the Scarritt-Bennett Center in Nashville, the Board also approved modifications to a Real Time Pricing program designed to encourage customers to reduce energy use during periods of high power demand when prices are high and shift their power use to lower-cost, off-peak periods.

The Board also:

• Set the 2009 base salary and performance incentives for TVA President and CEO Tom Kilgore and other top managers based on market surveys and a recommendation from the Board’s compensation consultant.
• Approved the final payment for 2008 in lieu of taxes that totaled $455 million.
• Extended the Regional Resource Stewardship Council, a federal advisory council that advises TVA on natural resource stewardship activities, for a fifth two-year term expiring Feb. 2, 2011.

In the coming months, TVA will work with local power distributors on the design and implementation of the new Valley Investment Initiative and will begin meeting with industries to discuss the program after April 1, 2009 when the program becomes effective.  Funding for the program will be available Oct. 1, 2009, as part of the 2010 fiscal year budget to be considered by the Board.

“The goal of the Valley Investment Initiative is to enhance economic development of the Tennessee Valley and reward the industries already here for their contributions to economic growth,” said TVA Senior Vice President of Economic Development John Bradley.   “The amount of incentive award a qualifying company could receive will depend on the company’s overall contribution to the Valley economy and compatibility with TVA’s power system and environmental goals.”

TVA is the nation’s largest public power provider and is completely self-financing.  TVA provides power to large industries and 159 power distributors that serve approximately 9 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:           

Jim Allen, Knoxville, (865) 632-7453
TVA News Bureau, Knoxville, (865) 632-6000
                                 

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