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“People
are buying more than bonds when they invest in TVA. They’re investing
in a small piece of one of the most innovative and reliable power companies
in the world.”
—Craven Crowell, Chairman
Earnings Objective
TVA is a corporation wholly owned by the United States government
that funds its internal cash and capital requirements with operating cash
flows and debt. TVA operates much like a nonprofit corporation, so it
does not accumulate a large amount of retained earnings. TVA is not authorized
by the TVA Act to issue equity securities.
Consistent
with its federal charter, TVA’s objective is to deliver a reliable
supply of power to its customers “at rates as low as are feasible.”
Also, TVA is required by the TVA Act to charge rates sufficient to cover
the principal and interest on its debt.
Financing
Goal
TVA’s financing goal is to offer unique investment opportunities
that provide exceptional value for both the investor and TVA.
Diversification
of TVA’s Debt Portfolio
Debt Maturities
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.
Investment
Opportunities
TVA designs and markets debt in a variety of innovative structures,
including Quarterly Income Debt Securities (QIDS), estate bonds, Putable
Automatic Rate Reset Securities (PARRS), discount notes, and an assortment
of other bonds. TVA’s rated bonds have a Triple-A rating, and interest
on TVA’s securities is generally exempt from state and local income
taxes. As of September 30, 1999, TVA had 31 long-term public debt issues
outstanding, totaling $26.4 billion.
Investor
Relations Online
Visit TVA Investor Relations on the World Wide Web at http://www.tva.com/finance
to view and download financial and investment information, including
annual reports, quarterly reports, TVA’s information statement,
and offering circulars (prospectuses).
Securities
Listings
TVA’s listed power bonds are traded on the bond market of the
New York Stock Exchange, and its QIDS and PARRS are traded on the New
York Stock Exchange under the symbols TVA, TVB, TVC, and TVE. All of
TVA’s bonds are publicly held.
Concentration
of TVA’s 340,000 U.S. Individual Investors
Interest
Payments
Investors
receive semi-annual interest payments for power bonds, except for estate
bonds, PARRS, and the 1996 Series C global bonds. Investors who own
QIDS, estate bonds, and PARRS receive quarterly interest payments, and
investors who own TVA’s 1996 Series C global bonds receive annual
interest payments.
Form and Denomination
| Security |
Book
Entry Form |
Denomination* |
| QIDS |
The
Depository Trust Corporation |
$25 |
| PARRS |
The
Depository Trust Corporation |
$25 |
| 1998
Series H Global |
The
Depository Trust Corporation |
£1,000 |
| 1996
Series C Global |
The
Depository Trust Corporation |
DM1,000 |
| Power
Bonds |
Federal
Reserve Bank System |
$1,000 |
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*Market prices and
broker policies may require that investors pay more or less than par
value for the security.
For
More Information
Sylvia
H. (Sissy) Caldwell, Senior Manager, Investor Relations
Tennessee Valley Authority
400 West Summit Hill Drive, Knoxville, Tennessee 37902
Phone: 888-882-4975 (toll-free in the U.S.)
Phone: 888-882-4967 (toll-free outside the U.S.)
Fax: 865-632-3225
E-mail: investor@tva.com
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