TVA's annual payments in lieu of taxes to the seven states in its service area provide valuable support to education and other local needs. In 2003 those payments totaled almost $330 million.

Community Investment

TVA’s activities have significant direct and indirect financial effects on communities in the Tennessee Valley through purchases of goods and services, in lieu of tax payments, economic development programs, and more.

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Financial investments

With an $827 million payroll and $1.9 billion in annual purchases from Valley suppliers, TVA’s continuing operations have a significant impact on local economies in the Tennessee Valley. Moreover, TVA’s annual payments in lieu of taxes to the seven states in its service area, based on power sales and power property values in those states, provide valuable support to education and other local needs in the region. In 2003 those payments totaled $329.4 million.

TVA routinely grants easements to communities for public recreation and highway right-of-way use. In 2003 the fair market value of these land grants was nearly $1 million. TVA also donated surplus vehicles, computers, equipment, office supplies and other materials, valued at $1.2 million, to Valley stakeholders, including distributors, schools and other non-profit organizations in the Valley during 2003.

In addition, by participating in TVA’s Distributor Procurement Partnership program, TVA’s power distributors realized $3.4 million in savings through contract initiatives with TVA suppliers in 2003.

TVA’s internationally accredited law enforcement agency, TVA Police, provided more than 3,800 TVA employees and community members with classes in first aid, CPR, defensive driving, preventing disease transmission, Automatic External Defibrillator (AED), and explosive identification and safety measures.

Economic development initiatives

TVA electricity fuels the Valley economy, and TVA supports sustainable economic growth by supporting community development, attracting new investment, and helping existing businesses and industries succeed. TVA helps communities meet challenges and prepare for economic growth by offering direct financial support and a wide range of technical services.

TVA’s multimillion-dollar revolving loan programs stimulate investment and job creation throughout the Tennessee Valley. In 2003, TVA loan commitments of $20.6 million leveraged more than $327 million in additional investment and helped attract or retain more than 6,500 quality jobs. In 2003, TVA and its economic development partners provided technical and financial assistance that helped attract or retain a total of 47,044 jobs and leverage $1.8 billion in capital investment for the region.

TVA provides minority-owned, women-owned, and socially and economically disadvantaged businesses with financial assistance and technical support specifically tailored to their needs. TVA’s $9 million Minority Business Development Loan Fund extends up to $500,000 to targeted businesses. TVA’s Valley Coalition for Minority Business Development brings together a partnership of 13 regional banks that offer additional capital investment and technical assistance.

TVA provides technical support, mentoring, and training to a network of 24 business incubators in the Valley. TVA’s Online Business Resource Center offers Valley entrepreneurs immediate and cost-effective access to business information and resources from TVA and its strategic business partners.

TVA supplies a broad range of other economic development services to Valley communities, from preparing economic profiles to targeting industries that would fit well in a particular market. TVA helps site selection consultants identify the most advantageous industrial locations in the Tennessee Valley and provides leads that can increase capital investment and attract better-paying jobs.

TVA’s $15 million Special Opportunities Counties Fund helps attract industries to Valley counties with low per-capita incomes. TVA also administers Appalachian Regional Commission and Delta Regional Authority funds that support economic development in many Valley communities.

Other TVA initiatives help local leaders improve their long-term competitiveness and identify environmentally viable and responsible strategies for pursuing local development.

TVA financial assistance and technical expertise to the state of Alabama and a local recruitment team helped bring the Boeing Delta Launch Vehicle Facility to Decatur, Ala. Boeing’s Delta IV rocket, manufactured at the Decatur facility, had its first successful launch in November 2002.

TVA provided financial assistance and engineering support for the American Eurocopter plant in northeast Mississippi. The $12 million facility provides 100 high-quality jobs assembling and customizing helicopters for specialized tasks.

TVA grants easements to communities to make land available for public parks and recreation areas. Concord Park is on Fort Loudoun Reservoir in Knox County, Tenn.

TVA-supported business incubators help new companies get off the ground. One incubator success story is Wright’s Cabinet Manufacturer Inc. in Louisville, Miss.

Paris Packaging opened a plant in Hopkinsville, Ky., with the help of a loan from TVA Economic Development. The community avoided a loss of 300 jobs thanks to Paris Packaging's decision to locate there.