Investment Opportunities

Electronotes®

TVA’s electronotes® program is a retail bond program that offers bond issues in a variety of different structures targeted to individual investors. These bonds are generally issued twice a month, in denominations of $1,000, with maturities ranging from one to 30 years. Most issues contain a survivor’s option. To learn more about electronotes® go to www.tvaelectronotes.com or call TVA Investor Relations toll-free at (888) 882-4975.

Quarterly Income Tiered Securities (QUINTS)

These bonds offer the survivor’s option and pay interest quarterly. They were issued in denominations of $1,000.

Putable Automatic Rate Reset Securities (PARRS)

These bonds trade on the New York Stock Exchange under the symbols “TVC” and “TVE.” They were issued in denominations of $25 and pay interest quarterly. They have a fixed coupon rate for the first five years after issuance, but, after five years, the annual reset provision provides for a possible reduction (never an increase) in the coupon rate under certain conditions every year until maturity. If the rate is reset, the bond owner has the option to put (return) the bonds to TVA at par value.

Valley Inflation-Indexed Power Securities (VIPS)

These bonds are indexed to inflation as measured by the Consumer Price Index (CPI). The bondholder receives a fixed coupon rate, but, if the CPI changes, the principal is adjusted for the change in the CPI.

Domestic Concentration of TVA bondholders

Discount Notes

These are short-term notes offered for sale on a continuing basis to a selected group of investment dealers and dealer banks. Discount notes are sold at a discount, in book-entry form, in principal amounts of $100,000 and additional increments of $1,000.

Other TVA Power Bonds (24 total)

TVA has both global and domestic bonds that were issued with varying maturities, structures, and interest payment time frames and in several different currencies.

Debt Maturities - As of September 30, 2003

All TVA bonds are publicly held. TVA issues a variety of debt securities in U.S. dollars and other currencies designed to meet the needs of investors around the world. Investors in all 50 states and over 60 countries have purchased TVA securities.

As of Sept. 30, 2003, TVA had 74 long-term debt issues outstanding, totaling $22.8 billion. Of these, 44 issues were electronotes®.

TVA is an equal opportunity and affirmative action employer. TVA also ensures that the benefits of programs receiving TVA financial assistance are available to all eligible persons regardless of race, color, sex, national origin, religion, disability, or age. This document can be made in an alternate format upon request.

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General Inquiries

Ellen Robinson

Executive Vice President,
Communications and Government
Relations

Tennessee Valley Authority
400 West Summit Hill Drive
Knoxville, TN 37902
Phone: (865) 632-6263
Fax: (865) 632-4760
Home Page: www.tva.com
E-mail: tvainfo@tva.com

Investor Inquiries

John M. Hoskins

Senior Vice President,
Treasurer/Investor Relations

Tennessee Valley Authority
400 West Summit Hill Drive
Knoxville, TN 37902

Website and E-mail Address

www.tva.com/finance
investor@tva.com

Phone/Fax Numbers

(888) 882-4975 (toll-free in the U.S.)
(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 whenever 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 website at www.tva.com/finance.