Tennessee Valley Authority CEO Jeff Lyash announced that the federal power agency will offer $1 billion in wholesale power payment deferrals as a means of helping local public utilities dealing with the economic impacts of the COVID-19 outbreak.
The TVA is offering that amount in credit support available based on the needs of local power companies.
“The impact of the COVID-19 outbreak on the communities we serve is unprecedented and creates a degree of economic uncertainty in the weeks and months ahead,” Lyash said. “We recognize that we have a responsibility to leverage TVA’s resources and expertise to provide local power companies the stability and flexibility to address the unique challenges faced by their customers.”
Detailed plans will be customized for each participating local power company based on individual needs and financial impacts. A portion of the local power company’s monthly TVA wholesale power payments would be deferred for a period during the ongoing COVID-19 response and an appropriate repayment plan will be put in place.
The new initiative builds on actions TVA has already taken to provide regulatory flexibility to allow local power companies to halt disconnection of electric service and respond quickly to their customers’ immediate needs.
“The strength of public power is a passionate commitment to serve people over balance sheets,” said Lyash. “This is perhaps more critical today than it has ever been.”
“Just as they have through February flooding and March storm recovery, our TVA team remains committed to working with all 154 of our local power company partners to benefit the communities and customers we jointly serve, especially during these challenging times.”
The Tennessee Valley Authority is a corporate agency of the United States that provides electricity for business customers and local power companies serving nearly 10 million people in parts of seven southeastern states. TVA receives no taxpayer funding, deriving virtually all of its revenues from sales of electricity.