America’s growing energy demand is straining power grids across the nation. The Tennessee Valley region is growing faster than the national average. More people are seeing how wonderful life is in the Tennessee Valley, and more businesses are relocating, expanding and creating jobs here. That in turn drives demand for energy. Meeting that need is crucial, not just for TVA, but for our region and for the nation.
As the president and CEO of Tennessee Valley Authority (TVA), I am honored to lead the organization that generates nearly all of Tennessee’s power and serves the surrounding region.
I am biased, but I believe TVA provides our seven-state region with a distinct competitive advantage—with some of the lowest rates and highest reliability in the nation. Over the last nine decades, TVA has built dams, one of the world’s largest coal plants, the country’s third-largest nuclear fleet, and today, we are building America’s energy future.
If we want American jobs, American-led innovation and American prosperity, we need to make more electricity. The strength of our economy will be determined by our energy and infrastructure. Reliable, resilient electricity is how you attract job growth, win the AI race and maintain our national security edge. Energy security is national security.
TVA is at the intersection of this pivotal moment. We want the next generation of jobs to be built right here—and they’ll need lots of low-cost, reliable energy. To meet that demand, TVA is undergoing its largest capital build in our history—building energy generation in every part of the Valley.
Today, TVA has 6,200 megawatts of new generation builds planned, with 3,570 megawatts currently under construction.
Natural gas continues to be a vital part of the TVA generation portfolio. TVA added almost 1,900 megawatts of new gas units at sites in Kentucky, Alabama and Tennessee that can come online quickly to meet peak demand. This includes the completion of new fast-start gas turbines at Johnsonville Combustion Turbine Plant. In the summer heat, that site can now provide a total of more than 1,200 megawatts to TVA’s grid. Additional reliable natural gas plants are under construction in Tennessee and Mississippi.
In East Tennessee, TVA is advancing nuclear technologies like small modular nuclear reactors. TVA is an industry leader with the nation’s first early site permit for a small modular reactor (SMR). This month, the Nuclear Regulatory Commission accepted our application for the BWRX-300 reactor. Having it under review with the NRC is a big step toward creating a path for other utilities to deploy the same technology—ensuring energy security and reliable electricity to power American industry.
In Alabama, we are evaluating adding a new pumped hydro storage facility. Working like a giant battery, water is pumped to a higher elevation and then released back through turbines when additional power is needed by the TVA system.
We are also looking at our current fleet of more than 32,000 megawatts to ensure we’re getting every megawatt we can out of those plants. That includes upgrading our hydro dams and nuclear plants and proactively performing updates to maintain the reliability and extend the life of our coal units. Also, with potential changes in the regulatory environment, we are reviewing other potential options, such as working with the administration to extend the life of other assets in our fossil fleet to meet growing demand.
TVA’s unique structure as a public power provider is what makes this possible. TVA was created by Congress in 1933 and is governed by the TVA Act. TVA receives zero dollars from direct federal appropriations, and the power system has been self-funded since 1959. In fact, TVA repaid the original federal investment and, today, makes payments in lieu of taxes to communities for schools, emergency response agencies, tourism and economic development.
TVA is financially strong—with the lowest debt in over 30 years, a strong balance sheet to support future growth and some of the lowest power rates in the country. Our primary financial constraint is an antiquated debt ceiling mechanism, last adjusted in 1979.
TVA isn’t in this alone. Foundational to this unique public power model is our work with 153 local power company partners to deliver electricity to homes and businesses and elected officials, other businesses and economic development partners. We provide electricity to over 60 directly served industries and take pride in our relationships with key federal installations, including Fort Campbell, Arnold Air Force Base, Redstone Arsenal and Oak Ridge National Laboratory.
My vision for TVA is that we continue to drive growth and prosperity in the region through excellence in operations, financial discipline and a commitment to the fundamentals of our mission. To do this, TVA must continue to build energy generation, strengthen our system and our financial health, and approach every aspect of our business with an innovative mindset. At the heart of TVA is our people—about 10,000 employees dedicated to serving the people in this region and making it a better place for future generations. Take a look at our website—TVA.com—and our social media channels to see what we’re up to and how you can weigh in on our work.
We must stay true to the TVA mission, and we should do so by telling the truth and educating our friends and neighbors about energy security and the need to build more power. TVA was created to solve some of our nation’s most pressing challenges. We produce electricity. We manage the river and its system of dams, and we protect the environment. We support and participate in economic development all across this region. This is what we do, every day.
