Bill JohnsonNASHVILLE - America's biggest government utility may be exempt from local property and sales taxes, but the Tennessee Valley Authority will still pay state and local governments $542 million in the next year, including nearly $335 million to Tennessee governments.
TVA said today it paid $533 million to state and local governments in fiscal 2014. Such payments have been down in the past couple of years due to a drop in power sales.
But with the increase in TVA revenues in the past year due to colder weather and a better economy, TVA will boost payments to $542 million over the next year.
Under the TVA Act, TVA pays 5 percent of its revenues to state and local governments through in-lieu-of-tax payments.
"We are pleased to assist with the many worthwhile and beneficials uses of these funds by state and local governments," TVA President Bill Johnson said.