Tennessee Valley Authority Programs and Incentives

As a potential employer in the Tennessee Valley, your company could be eligible for several programs that can benefit operations, electric service, operating costs, and bottom line. Brief descriptions and potential benefits from the programs are as follows:

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. Customers may choose one of the following EGC options:

• Four-year “flat rate” option – allows a monthly $ credit per kW for the life of the credit..

The credit amounts will vary based upon each month’s actual demand, and there is no maximum credit amount. For expansions a demand baseline will be set at the highest demand over the previous twelve months. Benefits of the EGC accrue on qualifying load above that demand.

A table of potential savings scenarios is below with projected expanding load:

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 credit is available under Part 3 of the GSA or TGSA rate schedules. 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)