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TVA Electric Utility Benefits 

As a potential employer in the Tennessee Valley, a company may be eligible for several programs that can benefit its operations, electric service, operating costs and bottom line.  Potential benefits from the programs are based on the number of jobs created, capital investment, average wage and electric use characteristics of the project.

Power Rates and Reliability

 

 

TVA and the distributors of TVA power are known for excellent reliability and competitively priced electric rates.  A well-diversified system of fossil, nuclear, hydro and renewable energy sources keeps power flowing through more than 17,000 miles of transmission line serving over 9 million residents in an 80,000-square-mile area.

 

Rates:
TVA and its distributor customers offer some of the lowest electricity rates in the nation, complemented by attractive pricing programs and rate credits.  Rates fall well below the national averages .

2008 Energy Information Administration data

  • Industrial rates:          19% lower
  • Commercial rates:      10% lower
  • Residential rates:        21% lower

Reliability:

  • While keeping rates competitive, TVA has maintained its world-class transmission reliability with a 99.999% reliability for 10 years in a row, beginning in 2000.
  • The TVA transmission system is one of the largest in North America.  TVA's transmission system has interconnections with 13 neighboring electric systems, and delivered more than 176 billion kilowatt-hours of electricity to its customers in 2008.
  • TVA also has achieved outstanding performance in two key reliability factors:
    • Customer Connection Point Interruptions, in which TVA achieved the best rate in its history, and
    • Load Not Served, a measure of the frequency and magnitude of outages. TVA has been characterized by the North American Electric Reliability Corporation as having a culture of reliability.

The Valley Advantage

 

 

Through the Valley Advantage initiative, TVA makes direct cash investments in major economic development projects in the Tennessee Valley.  Valley Advantage funding is paid directly to the company and may be used in a variety of ways including:
  • public or private infrastructure development,
  • purchase of fixed assets
  • energy efficiency or other purposes.   

Funding amounts are based on the economic impact of the project within the first three years, as measured by the capital investment, number of jobs created, average wages and load factor. 

The program will only be used for projects determined to be environmentally sound.  The program's minimum requirements are:

Capital investment                 $20 million
Employment                           100 new jobs
Load Factor                            65%
Wages                                   10% above the local average

Enhanced Growth Credit (EGC)

 

 

The Enhanced Growth Credit program provides credits on power bills to new or expanding industrial companies that create new, firm electrical demand of 100 kW or more for an SIC-qualified company, or 250 kW for an all-electric user.  Customers may choose one of the following EGC options:

 

  • Four-year "flat rate" option - allows a monthly $6 credit per kW for the life of the credit.

  • Eight-year "declining rate" option - allows a monthly $6 credit per kW in the first year; monthly credit is reduced by $0.75 per kW in each subsequent year. The credit amounts will vary based upon each month's actual demand, and there is no maximum credit amount.

Benefits of the EGC accrue on qualifying load above that baseline demand.

Small Manufacturing Credit (SMC)

 

 

Companies whose monthly demand falls between 1,000 and 5,000 kW and SIC code is between 20 and 39, will qualify to receive the substantial benefits of the Small Manufacturing Credit Program. 

 

These credits are offered by TVA and the local power distributor to assist new and expanded businesses.  The credits are assessed based upon energy and demand at individual meter points. 
In any month when the metered demand for firm power exceeds 1,000 kW, a credit is applied to each kW of metered demand used in determining the firm billing and each kWh of firm energy. 

The monthly credit is equal to the sum of:

  • $1.38 per kW for the first 1,000 kW of metered demand
  • $1.63 per kW of any metered demand amount in excess of 1,000 kW, and
  • $0.0054 per kWh of firm energy (0.54 cents/kWh)

Sixty-Minute Response Power

 

 

Sixty-Minute Response Power (60 MR) allows participating commercial and industrial customers to qualify for credits on their power bills in exchange for giving TVA the right to suspend the availability of power within 60 minutes notice to address the reliability needs of the TVA system. 

 

Qualifying participants earn a credit of $1.70 per kW on the highest maximum of 60 MR demand established in any billing month in which the customer's load factor exceeds 50%.  The program requirements are:

  1. A minimum total contract demand greater than 1,000 kW at a single delivery point.
  2. A minimum Effective Interruptible Demand (EID) of at least 500 kW.  EID is the amount of demand reduction that TVA expects the customer to accept if suspended during TVA's highest 200 hours of system demand each year.
  3. The 60 MR program is limited to a maximum EID of 1,000 MW.
  4. A minimum average load factor greater than 40%.
  5. An adequate plan for meeting 60 MR suspension requirements.
  6. A five minute interval demand meter must be installed

Economic Development Loan Funds (EDLF)

 

 

TVA provides EDLF loans to established companies relocating or expanding their operations in the Tennessee Valley. Funds may be used for building expansions, equipment purchase, and other purposes.

 

 Loan amounts, terms and interest rates are dependent upon criteria such as number of jobs created, total capital investment, security provided, and impact on the community. All loans are subject to a financial and eligibility review.

  • Loan amounts are determined based upon job growth, capital investment leveraged, and identified project needs.
  • Interest rates vary by project, but are typically below the prime lending rate.
  • Loan terms for equipment loans may be up to 5 years, while building and real estate loans may be up to 15 years.
  • Leveraging other funds is TVA's role as a lender, and we are seeking to leverage $3 to every $1 invested through the EDLF program.
  • Generally, the approval process is quicker and rates are lower for loans secured with letters of credits.

Consulting and Technical Services

 

 

Comprehensive Services Program:
Through the Comprehensive Services Program, TVA and participating distributor partners offer a wide variety of program services designed to help companies identify energy solutions that generate savings and increase profit.  These programs are typically available at little or no cost. 

 

Services include:

  • identifying energy efficiency improvements for buildings and equipment, recommending energy-efficient construction guidelines
  • power quality monitoring and recommendations
  • providing lighting analyses and recommendations
  • analyzing energy management systems
  • consulting on HVAC systems and technologies
  • infrared and ultrasonic testing services and many others.

Engineering and Design Services:
TVA's team of professional engineers and designers can help companies make better decisions, yielding time and money savings, by providing preliminary site evaluations and layouts as well as conceptual building designs and models.