KNOXVILLE, Tenn. ― The Tennessee Valley Authority Board of Directors, on Thursday, approved $150 million in additional advanced nuclear funding to support continued design work and TVA’s development of potential small modular reactors (SMRs) at its Clinch River site near Oak Ridge, Tenn.

The Board, which approved an initial $200 million at its February 2022 board meeting, has now approved $350 million in total for the project. At nearly 60% carbon-free, this investment to build clean generation accelerates TVA’s transition to clean energy to power the region’s growing population and economy.   

“We believe advanced nuclear technologies will play a critical role in our region and nation’s drive toward a clean energy future,” said Jeff Lyash, TVA President and CEO. “Today’s Board decision demonstrates TVA’s commitment to continue leading in this effort.

“Small modular reactors are an energy innovation technology that America must dominate – for our energy security, which is really our national security.”  

Addressing Growth Challenge

 According to TVA, the region’s population is growing three times faster than the national average, and in 2023, GDP in TVA’s service territory grew 0.5% faster than the national average.

To address the need for more electricity, TVA is investing nearly $16 billion through FY27 to build new generation and infrastructure and enhance the reliability of existing assets. The agency is building ~3,500 megawatts and has made great progress by completing 1,400 megawatts and securing 800 megawatts of solar this year.           

“As energy demand grows due to greater reliance on electricity, new residents moving to this region and new economic investment, we need a diverse fleet that leverages multiple generation sources,” said Lyash. “The answer to keeping our energy secure, affordable and reliable is a well-rounded portfolio that is increasingly carbon-free and substantially expandable – and TVA’s portfolio is one of the most diverse in the nation.”

To fund ongoing construction and energy development, the TVA Board approved a 5.25% base rate increase that will take effect October 1, 2024. An average residential bill in FY23 was about $138, so this increase will translate to about an additional $4.35 each month.

“We recognize that people don’t pay rates, they pay bills, and that matters,” said Lyash. “We know this is a kitchen table issue for many families across our region. At TVA, we don’t like price increases any more than you do, and that’s why we continually work to reduce expenses by hundreds of millions of dollars each year. We have done everything possible to absorb costs as we invest in the reliability of our existing plants, construct new generation to keep up with growth and maximize solar to produce more carbon-free energy.”

In August 2023, the TVA Board of Directors approved a 4.5% base rate increase for FY24. These funds helped support the completion of Paradise and move forward with construction of additional generating resources at Cumberland, Kingston, Johnsonville, and Shawnee.

Lyash pointed out that because of TVA’s diverse generation resources, reduced fuel costs have kept residential rates lower than 75% of top 100 U.S. utilities and through the first nine months of this fiscal year power rates were three percent lower than the same period last year despite the rate increase.

“Through our employees’ efforts, innovation and diverse generation TVA continues to have some of the lowest electric rates in the nation,” said Lyash. “We are keeping power affordable by investing in energy efficiency to lower consumers’ power bills, while generating electricity at the right time, with the cleanest fuel, at the lowest possible cost.”

Lowering Energy Bills

The board received an update on TVA’s $1.5 billion effort to help offset 30% of anticipated load growth over the next 10 years by investing in energy efficiency and demand response.

In the first 10 months of the program, TVA has helped businesses and residents reduce their energy use, resulting in over 320,910 tons of CO2 avoided, which is equivalent to the carbon emissions of 35,072 homes powered for a year.

In fiscal year 2024, TVA has helped more than 653 businesses reduce their energy use, resulting in over $121 million in savings on their electric bills over the life of their energy improvements. Over 42,477 homeowners have taken advantage of energy efficiency upgrades, receiving more than $5.2 million in rebates and helping them to save nearly $51.6 million on their electric bills over the life of their energy improvements.

“TVA is investing in your home and business to help you save energy and money,” said Lyash. “We encourage everyone to take advantage of our energy-saving programs at energyright.com to save money and be a smarter energy consumer."

Other Board Action

• Board approved a set of strategic elements including an initiative to accelerate TVA’s clean energy programs.   
• Approved TVA’s Fiscal Year 2025 budget
• Accelerated TVA’s deployment of clean technologies, that includes 10,000 megawatts of solar by 2035.
• Reviewed incentive plan measures and goals

TVA places a high priority on transparency. Learn more about TVA’s diversity and inclusion efforts, sustainability, strategic planning, financial health, and new nuclear program at tva.com/about-tva/reports. 

Broad Support for TVA’s Advanced Nuclear Leadership

On August 22, 2024, TVA’s Board of Directors approved an additional $150 million in advanced nuclear funding. This brings total funding to $350 million to design and develop small modular reactors at its Clinch River site in Oak Ridge, Tennessee.

Community leaders and partners support the TVA Board’s action to further America’s development of advanced nuclear technologies to safeguard our nation’s energy security.   

“Tennesseans appreciate TVA’s continued investment in safe, clean and reliable nuclear energy for the future. This additional investment, coupled with the state’s focus on creating a nuclear energy ecosystem, will ensure Tennessee is the number one state for nuclear energy companies to invest and thrive, driving continued opportunity and economic growth.” Tennessee Governor Bill Lee

“TVA has helped Tennessee establish itself as a national leader in the advancement of nuclear energy, and this funding will enable TVA to continue its design work and development of small modular reactors at the Clinch River site near Oak Ridge. This development will ensure there is an affordable and environmentally friendly energy source in the Tennessee Valley for generations to come.” U.S. Senator Marsha Blackburn

“TVA’s continued investment in cutting-edge new nuclear development is a strong testament to Tennessee’s leadership in the next generation of American energy production. This will ensure America remains the world leader in nuclear energy and innovation.” U.S. Senator Bill Hagerty

“TVA’s additional $150 million investment to support the design work and deployment of small modular reactors at the Clinch River site shows the commitment that TVA and Tennessee have to make America’s New Nuclear Future a reality while securing safe, abundant, clean, and affordable energy for the Tennessee Valley and Southeast United States. I applaud TVA’s leadership and partnership with me to expand domestic nuclear energy and secure America’s energy independence.”  Congressman Chuck Fleischmann, Chairman of Energy and Water Appropriations

“Roane County is excited to hear of TVA’s continued support for the nation’s first small modular nuclear reactor at the Clinch River Site. Not only is the construction of an SMR vital to the nation’s energy security future, it is a cornerstone of our economic development efforts in the region. Roane County sits in the epicenter of a nuclear renaissance. Partnering closely with TVA is critically important to realize the success that we envision for our people. This decision by the TVA Board of Directors affirms our continued partnership on the pathway toward a brighter energy future.” Roane County Executive Wade Creswell

“Since the days of the Manhattan Project, the city of Oak Ridge has played a vital role in advancing nuclear innovation. Today’s action by the TVA Board ensures that our community will remain a national leader in the development of new nuclear technologies, which will help support the transition to a clean energy future.” Oak Ridge Mayor Warren Gooch

"The Nuclear Energy Institute applauds TVA for committing an additional $150 million to the development of small modular reactors through its New Nuclear Program. This significant investment is critical to our industry's ongoing efforts to construct and deploy advanced nuclear technologies in the U.S., essential for achieving a clean, reliable and resilient energy future. TVA's continued investment in next-generation nuclear plays a vital role in fostering innovation and driving progress within our industry." Maria Korsnick, president and CEO of the Nuclear Energy Institute

“We at OPG share TVA’s conviction that nuclear power will play a crucial role in meeting increasing demand for low-carbon electricity and energy security. Our partnership with TVA and others on the standard design of the BWRX-300 will expedite the new nuclear generation necessary to help reliably power our growing, electrified economies.” Ken Hartwick, Ontario Power Generation President and CEO

“Our nation must deploy affordable and reliable carbon-free technologies like small modular reactors to power the world and to maintain economic competitiveness in global markets.  East Tennessee has long been home to the development, design and application of fission technologies that benefit the region and the nation. ORNL’s world-leading researchers and capabilities stand ready to work alongside TVA and the skilled nuclear workforce in Tennessee to deliver affordable, reliable and clean nuclear energy for generations to come.” Stephen Streiffer, Oak Ridge National Laboratory Director

“Having worked in economic development, public service, and now academia, I've witnessed firsthand the power of innovation to address the pressing challenges facing our nation. The Tennessee Valley Authority (TVA) stands as a testament to what visionary leadership and a commitment to uplifting communities can accomplish. As we stand on the cusp of a new era, it's time for our collective efforts to converge once again. UT, in partnership with Tennessee’s community colleges and colleges of applied technology, are prepared to cultivate the skilled workforce essential to advancing the nuclear industry. Simultaneously, TVA's expertise as a nuclear operator positions it to spearhead initiatives like the Clinch River Small Modular Reactor project, demonstrating the feasibility of adding reliable nuclear power to the energy mix that will power our nation. Together we can pave the way for a sustainable and prosperous future for generations to come.” Randy Boyd, President, University of Tennessee System

"This decisive leadership by the Tennessee Valley Authority Board of Directors is appreciated and needed. Nuclear will be the backbone of carbon-free energy systems of the future and help accommodate the integration of more renewable generation. Investing and building in new nuclear in the Tennessee Valley region will allow us to continue to grow our communities and ensure reliable, affordable, and clean power for all those who depend on us." Chris Jones, Middle Tennessee Electric President & Chief Executive Officer

“Regional leaders from the Tennessee Valley Corridor strongly support the TVA Board’s commitment to and development of advanced nuclear technologies. We believe TVA’s leadership in Small Modular Reactor technologies will not only lead to greater energy security for the nation, but it will also help propel the continued economic development and job creation we need all across our Corridor. As our energy demands continue to grow, we know we can count on TVA for continued clean and reliable energy and power generation.” Mark Gradkowski, Board Chair, Tennessee Valley Corridor, Inc.

"The East Tennessee Economic Council applauds TVA’s leadership and continued investment in advanced nuclear technologies to meet the region’s growing energy needs. TVA’s deployment of Small Modular Reactors will not only provide clean, reliable energy but will also incentivize supplier companies to locate in the valley, creating tens of thousands of jobs and impacting the regional economy for decades. The Clinch River Nuclear Project will inspire fast followers, establishing the U.S. as a global leader in nuclear innovation and strengthening both national and international security. We thank TVA’s Board of Directors for their forward-thinking vision to advance nuclear power in the Tennessee Valley."  Tracy Boatner, President & CEO, East Tennessee Economic Council, Member Tennessee Nuclear Energy Advisory Council