The Tennessee Valley Authority on March 26 unveiled an initiative to support increased flexibility for local power companies that are responding to community and customer needs during the ongoing response to the COVID-19 pandemic.
TVA will make up to a total of $1 billion of credit support available as an option to local power companies through the deferral of wholesale power payments based on the needs of individual local power companies.
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, TVA noted.
“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,” said TVA President and CEO Jeff Lyash. “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.”
TVA said that 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.
TVA has set up a COVID-19 webpage that details TVA’s response to the pandemic and frequently asked questions about COVID-19, among other things.
TVA delivers electricity to 154 local power companies and to large, energy-intensive industrial customers and federal facilities.