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Tue January 4, 2005
TVA May Offer Long-Term Contracts
By Alabama Public Radio
Knoxville, TN – The Tennessee Valley Authority may offer long-term contracts to its distributors. The consideration comes after several distributors announced plans to leave the public utility. But the T-V-A is hoping to keep them through longer contracts with lower electric rates. Ninety-nine of the authority's current distributors have short-term contracts, and the T-V-A is interested in utilities agreeing to contracts lasting as long as 20 years. A T-V-A executive says the agency is negotiating with distributor representatives and may offer lower rate prices to promote longer commitments.