TVA Board Approves Record Tax Equivalent Payments for 2003

Nov. 5, 2003

TVA will pay state and local governments a record $329.4 million in tax equivalent payments this year, an increase of $1 million over last year.

The three-member TVA Board today approved final payments for the 2003 fiscal year at a meeting in Memphis.

“The record amount of payments by TVA benefits local communities across the Tennessee Valley by helping fund schools and many other needed programs and services,” TVA Chairman Glenn McCullough Jr. said on behalf of the Board. “The tax equivalent payments along with reliable, affordable power help enhance economic growth for the people we serve through local distributors of TVA power.”

TVA makes tax equivalent payments to eight states and to counties within those states. The tax equivalent payments are based on TVA power sales revenue in 2002 and TVA-owned power property in each state. During the fiscal year, TVA makes monthly payments based on preliminary forecasts.

TVA has been making tax-equivalent payments since 1933. Most of the money is paid directly to state governments. However, all or part of the amount paid by TVA is redistributed to local governments according to formulas in each state.

In addition to the seven states in the service area, TVA makes payments to the state of Illinois for coal reserves owned by TVA.

The total payments by TVA to each state and county for fiscal year 2003 are:

Alabama: $77,524,258
Georgia: $5,161,027
Illinois: $330,850
Kentucky: $26,389,103
Mississippi: $18,129,879
North Carolina: $1,557,086
Tennessee: $200,171,229
Virginia: $104,245

TVA is the nation’s largest public power producer and is completely self-financed. TVA provides power to large industries and 158 power distributors that serve 8.3 million consumers in seven southeastern states.

Media Contact:

Gil Francis, Knoxville (865-632-8031) or TVA News Bureau, Knoxville (865-632-6000)