TVA Tax Equivalent Payments Total $579 Million In 2012

Monday, November 19, 2012

The Tennessee Valley Authority provided a record $579 million in tax equivalent payments in fiscal year 2012 to states and local governments where it sells electricity or has power properties.

TVA pays tax equivalent payments annually in the eight states where it sells electricity or owns generating plants, transmission lines, substations and other assets, and directly to 146 local governments where TVA owns power facilities.

"These funds provided by TVA play a significant role in the continued economic development, improved quality of life, and strong community growth across TVA’s service region,” said TVA President and CEO Tom Kilgore. “The payments also are an important part of TVA’s mission to help the consumers we serve every day.”

The TVA board of directors at its Nov. 15 meeting in Scottsboro, Ala., approved the final tax equivalent payment for fiscal year 2012. This year’s payments totaled $49 million more than 2011.

The following payments were made to each state in fiscal year 2012:

· Alabama - $122,665,588

· Georgia - $9,409,090

· Illinois - $550,070

· Kentucky - $46,755,942

· Mississippi - $40,878,879

· North Carolina - $2,837,202

· Tennessee - $354,389,772

· Virginia - $1,534,406

· Total - $ $579,020,949

The TVA board also approved estimated tax equivalent payments of $536 million for fiscal year 2013. That reduced estimate is attributed to a slow economy and less TVA power sales revenues due to milder, warmer weather last winter resulting in less electricity used for heating.

TVA returns five percent of power sales revenues from the previous year in the form of tax equivalent payments. The funds are distributed in monthly payments, with final payments approved at the end of each fiscal year.

The payments compensate state and local governments that cannot levy property or sales taxes on TVA as a federal entity, and make TVA one of the largest “taxpayers” in Tennessee and Alabama. In addition to the seven states and many counties in the Tennessee Valley region, the state of Illinois and two of its counties receive payments for coal reserves TVA owns there.

State and local governments distribute the funds according to their own formulas and discretion to support a variety of initiatives, including schools, fire departments and other emergency response agencies, tourism and recreation, and human service organizations. 

Since 1941, TVA has made more than $10.3 billion in tax equivalent payments, with payments in the past 10 years totaling $4.4 billion. 


TVA’s Carbon Trajectory

Since the dawn of the industrial revolution, economic growth and carbon emissions have gone hand-in-hand. Manufacturing has relied on power production, which has mostly relied on coal.  That is until the year 2000, when 35 nations undertook the difficult work of carbon decoupling, which is to say breaking the link between growth in their gross domestic product and carbon ... (click for more)

Three Local Engineers Selected For Tennessee Leadership PE Class

Three local engineers have been selected to participate in the 2017 Tennessee Leadership PE class, a leadership program designed to sharpen the skills of high potential engineering leaders and current mid-level and senior leaders. Class members selected from engineering firms located in the Chattanooga and Cleveland area are: ·          ... (click for more)

Couple Break Into East Ridge Home; Tie Wrists Of 73-Year-Old Man

East Ridge Police are looking for a couple who broke into the home of an elderly East Ridge man and tied his wrists while ransacking his home on Sunday morning. East Ridge Police responded to an address on Moseley Circle on a report of a home invasion at  10 a.m.   A white male and white female knocked on the door, then forced their way into the home. The man ... (click for more)

Alabama Man Faces Murder Charge In Shooting Death At Bradley County Landfill

An investigation by  s pecial agents with the Tennessee Bureau of Investigation has resulted in the arrest of an Alabama man in a shooting death that occurred last fall at the Bradley County landfill.   At the request of 10 th  District Attorney General Steve Crump, last Sept. 8 TBI special agents began investigating a shooting death that occurred that ... (click for more)

Proud Of Chattanooga And The Women's March

I was very happy to participate in the Women’s March on Chattanooga yesterday afternoon. The diversity and the sheer numbers of women, men and children were incredible. One estimate was at least 3,000. Standing together with all of these like-minded souls was overwhelming and humbling.  I have rarely been so happy and so proud of my town.  One question is, why is ... (click for more)

Roy Exum: Washington’s Favorite

By the time darkness fell over Washington, D.C., on Sunday, it had clearly been a monumental weekend. On Friday Donald Trump had ben inaugurated as the 45 th President of the United States. On Saturday a fierce crowd of a half-million women who each are entitled to have the identical rights as men in the same United States, marched on The Mall. And then, the Washington Post printed ... (click for more)