TVA pays record $579M to state, local governments

The Tennessee Valley Authority paid a new high of $579 million in tax equivalent payments in fiscal year 2012, a $49 million increase over fiscal 2011.

The biggest chunk – more than $354 million – was paid to Tennessee governments.

TVA pays tax equivalent payments to state and local governments in the states where it sell electricity or owns power plants and other assets.

“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,” outgoing TVA President and CEO Tom Kilgore said in a news release. “The payments also are an important part of TVA’s mission to help the consumers we serve every day.”

The final payment for fiscal 2012 was approved by the TVA board at its meeting in Scottsboro, Ala. last week.

The board also approved estimated tax equivalent payments of $536 million for fiscal year 2013. The lower amount is expected based on “a slow economy and less TVA power sales revenues due to milder, warmer weather last winter resulting in less electricity used for heating,” TVA said in a statement released Monday.

Here’s a breakdown of the payments made to the eight states:

Alabama — $122,665,588

Georgia — $9,409,090

Illinois — $550,070

Kentucky — $46,755,942

Mississippi — $40,878,879

North Carolina — $2,837,202

Tennessee — $354,389,772

Virginia — $1,534,406

Total — $579,020,949