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TVA Tax Equivalent Payments Total Record $337.7 Million

November 30, 2004

CULLMAN, Ala. -- TVA will pay state and local governments a record $337,704,853 in lieu of taxes in 2004, an increase of more than $8 million or 2.5 percent over last year.

The three-member TVA Board approved final payments for the 2004 fiscal year at a meeting in Cullman today.

“Like any good corporate citizen, TVA contributes to the tax base of communities that we serve in partnership with local distributors of TVA power,” said TVA Chairman Glenn McCullough Jr. “The record amount of tax equivalent payments during 2004 will benefit local communities across the Tennessee Valley by helping fund education and many other needed programs and services. These payments along with affordable, reliable power provided by TVA help enhance the quality of life for the people of the Valley.”

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 2003 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.

Total payments by TVA to each state and county for fiscal year 2004 are:

TVA is the nation’s largest public power producer, and its power system is 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, TVA News Bureau, (865) 632-6000
TVA News Bureau, Knoxville, (865) 632-6000

TVA Newsroom