KNOXVILLE — The Tennessee Valley Authority provided a record $579 million in tax equivalent payments in fiscal 2012 to states and local governments where it sells electricity or has power properties, according to a TVA release.
Those payments included $122,665,588 distributed in Alabama, the release states.
TVA pays tax equivalent payments annually in the eight states where it sells electricity or owns generating plants, transmission lines, substations and other assets, and directly to 146 local governments where TVA owns power facilities.
“These funds provided by TVA play a significant role in the continued economic development, improved quality of life, and strong community growth across TVA’s service region,” said TVA President and CEO Tom Kilgore. “The payments also are an important part of TVA’s mission to help the consumers we serve every day.”
This year’s payments to the eight states totaled $49 million more than 2011.
The TVA board has approved estimated tax equivalent payments of $536 million for fiscal year 2013. That reduced estimate is attributed to a slow economy and less TVA power sales revenues due to milder, warmer weather last winter, which resulted in less electricity used for heating.
TVA returns 5 percent of power sales revenues from the previous year in the form of tax equivalent payments. The funds are distributed in monthly payments,
Payments made to the other states in fiscal 2012 include: