On June 22, 2020, TVA completed an Environmental Assessment (EA) and issued a finding of no significant impact (FONSI) addressing its proposal to provide flexible power generation options to its local power company customers (Valley Partners) that have entered into Long-Term Partnership Agreements with TVA.

The Long-Term Partnership Agreement, first offered in August 2019, includes provision for those local power companies who adopt the agreement to meet a portion of their power needs through their own generating sources.  As of July 2023, 146 of the local power companies served by TVA have adopted this Agreement.

In February 2020, the TVA Board of Directors approved a set of principles to guide local power companies interested in adding flexible generation, pending completion of appropriate environmental review in compliance with the National Environmental Policy Act. The approved principles resulted from structured engagement with local power companies and reflect their feedback to ensure the outcome provides a viable solution to their needs.

In April 2020, TVA issued a draft EA for public review and comment. The draft EA evaluated the potential environmental and socioeconomic impacts of two alternatives, taking no action and implementing the power supply flexibility option.  TVA received 12 comment submissions from the public during the review period and considered the input in completing the EA. The final EA includes responses to the public comments in an appendix.  

In 2023, with input from its Valley Partners, TVA proposed changes to the original Flexibility principles pertaining to commercial elements regarding size, location, benefit allocation, and other contractual terms. Under the proposal, TVA would create:

1. a new option to allow two or more Valley Partners to collaborate on generation projects;
2. a new option for qualifying on-site installations, to which a separate technology factor would be applied; and
3.  a new option for partners to work directly with developers to deploy solar projects that would interconnect with TVA’s bulk transmissions system.
   

TVA would not change the original capacity allocation (i.e., up to 5% of a Valley Partner's energy), the pricing framework, or energy resources options. TVA completed a Determination of NEPA Adequacy on June 30, 2023, to document that the 2020 EA adequately analyzed the changes.