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Earnings
Objective
TVA
is a corporation wholly owned by the U.S. government that primarily
finances its capital requirements through internally generated funds
and by issuing debt. Consistent with its Federal charter, TVA’s
objective is to deliver a reliable supply of power to its customers
at the lowest feasible cost. TVA operates much like a nonprofit corporation,
so it does not accumulate a large amount of retained earnings. TVA is
not authorized to issue equity securities.
Financing
Goal
TVA’s financing goal is to offer unique investment opportunities
that provide exceptional value for both the investor and TVA.
Debt
Maturities
Investor Base
TVA
issues a variety of debt securities in U.S. dollars and other currencies
targeted to institutional and individual investors around the world.
TVA’s 370,000 individual and institutional investors reside in
all 50 states and in 35 countries.
Key Strengths
of TVA Securities
Although TVA securities
are not obligations of or guaranteed by the U.S. government, TVA’s
rated securities receive the highest rating from Moody’s and Standard
and Poor’s (Aaa/AAA), which is derived from TVA’s status as
a wholly owned corporate agency of the U.S. government and its key credit
strengths. These strengths include the requirements that holders of
power bonds are given first pledge of payment from net power proceeds
and that TVA charge electricity rates sufficient to ensure the full
payment of annual debt service as well as to cover operating and capital
costs. Also, the TVA Board, appointed by the President and confirmed
by the Senate, has the sole authority to set power rates. TVA securities
may be issued only to provide capital for its power program or to refund
existing indebtedness.
Investment Opportunities
TVA designs and
markets debt in a variety of innovative structures, including QIDS (Quarterly
Income Debt Securities), PARRS (Putable Automatic Rate Reset Securities),
discount notes and an assortment of other debt securities. As of September
30, 2000, TVA had 36 long-term public debt issues outstanding, totaling
$24 billion.
Securities Listing
All of TVA’s
bonds are publicly held and several are listed and traded on the bond
market of the New York Stock Exchange. TVA’s QIDS and PARRS issues
are listed and traded on the New York Stock Exchange under the symbols
TVA, TVB, TVC and TVE.
Form
and Denomination
| Security |
Book
Entry Form |
Denomination* |
Interest
Payments |
| QIDS
(2 issues) |
The
Depository Trust Corporation |
$25 |
Quarterly |
| PARRS
(2 issues) |
The
Depository Trust Corporation |
$25 |
Quarterly |
| QUINTS
(Quarterly Income Tiered Securities—5 issues) |
Federal
Reserve Bank System |
$1,000 |
Quarterly |
| 1998
Series A Estate Feature |
Federal
Reserve Bank System |
$1,000 |
Quarterly |
| 1998
Series H Global |
The
Depository Trust Corporation |
£1,000 |
Semi-annual |
| 1996
Series C Global |
The
Depository Trust Corporation |
DM1,000 |
Annual |
| Other
Securities (24 issues) |
Federal
Reserve Bank System |
$1,000 |
Semi-annual |
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*Market prices and
broker policies may require that investors pay more or less than par
value for the security.
To receive a complete
listing of TVA securities, call Investor Relations at 1-888-882-4975.
For
More Information
Mailing
Address
Sylvia
H. (Sissy) Caldwell
Senior
Manager, Investor Relations
Tennessee Valley Authority
400 West Summit Hill Drive
Knoxville, Tennessee 37902
Go
to Investor Resources Web site
Send e-mail to Investor
Relations
Phone/Fax
Numbers
1-888-882-4975 (toll-free in the U.S.)
1-888-882-4967 (toll-free outside the U.S.)
Fax: 865-632-3225
E-mail
Alert
E-mail alerts are
messages that are conveniently delivered to a subscriber’s e-mail
address when certain new information is posted to TVA’s Investor
Resources Web pages. To learn more about how to subscribe to e-mail
alerts, visit TVA’s Investor
Resources Web site.
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