Investor Information

Financing Goal

TVA’s financing goal is to offer unique investment opportunities that provide exceptional value for both the investor and TVA.

Debt Maturities - As of September 30, 2004

As of September 30, 2004, TVA had 76 long-term debt issues of various maturities outstanding, which totaled $21.3 billion.

TVA had $1.9 billion in short-term discount notes outstanding as of September 30, 2004.

Investor Base

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.

Securities Listing

All TVA bonds are publicly held. Most TVA Power Bonds are listed and traded on the bond market of the New York Stock Exchange, and some global bonds are listed on various foreign exchanges. TVA Putable Automatic Rate Reset Securities (PARRS) are listed and traded on the New York Stock Exchange under the symbols “TVC” and “TVE.”

Form and Denomination

* Market prices and broker policies may require investors to pay more or less than par value for a security in the secondary market. TVA does not guarantee the availability of any securities or the existence of any secondary markets. These pages do not include all information about TVA or its securities that is important for making investment decisions.

TVA bonds offer investors security

Credit Ratings: TVA’s rated bonds are rated Aaa by Moody’s Investors Service and AAA by Standard & Poor’s and Fitch Ratings.

Statutory Requirements: The TVA Act requires TVA to set power rates sufficient to pay, among other things, debt service on outstanding bonds.

First Pledge of Payment: All TVA bonds and notes are senior debt and holders of these securities are given first pledge of payment from net power proceeds.

Purpose of Issuance: TVA may only issue securities to provide capital for power program purposes or to refund existing indebtedness.

State & Local Tax Exemption: Both the principal and interest on TVA securities are generally exempt from state and local income taxes.

Survivor’s Option: Some issues contain an option that allows for redemption at par value upon the death of the beneficial owner (subject to certain limitations).

TVA securities are backed solely by the net power proceeds of the TVA power system and are neither obligations of nor guaranteed by the U.S. Government.

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

Web Site 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: 865-632-6673

additional Information

Please visit www.tva.com/finance for more details on TVA investment opportunities as well as offering circulars for specific securities, or call TVA’s Treasury organization toll-free at 888-882-4975. TVA does not sell securities directly to investors.

TVA securities may generally be purchased through a broker, bank, or other financial institution.

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 Web site at www.tva.com/finance

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 available in an alternate format upon request.

Description of TVA Securities

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 in denominations of $1,000, with maturities ranging from one to 30 years.

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 had a fixed coupon rate for the first five years after issuance; however, an annual reset provision provides for a possible reduction in the coupon rate under certain market conditions. 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). Investors receive a fixed coupon rate, but the principal is adjusted for the changes in the CPI over time.

Discount Notes
These are short-term notes offered for sale on a continuing basis to 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 (22 total)
TVA has both global and domestic bonds of varying maturities, structures, and interest payment frequencies and in various currencies.