The Tennessee Valley Authority’s mission has always been to make life better in the region through what we call the three E’s: providing reliable, affordable energy, driving economic development and being responsible stewards of the environment. Every day, TVA employees come to work with a dedication and commitment to living that mission, and five months into my role as interim CEO, I am confident we are doing just that.
In August, the TVA Board of Directors took significant action to keep TVA moving forward: investing in new generation, continuing to expand our power grid and updating rates to enable growth while protecting customers. Those actions, to be executed by our great team of employees, will help TVA better deliver on our core mission.
The board approved TVA’s 2026 Integrated Resource Plan (IRP). The IRP is built on least-cost planning principles, utilizes robust scenario modeling and sets the foundation for future asset and financial planning. Stakeholder engagement and feedback have been an important part of this open and transparent process, with dozens of public engagements over the last three years. The approved IRP suggests the region will need 11 to 32 gigawatts of additional generation capacity between now and 2040. It identifies the diverse energy mix needed to serve our growing region and maintain dependable and year-round reliable power. In short, the IRP ensures we are adding the right generating resources, strengthening energy security while maintaining our commitment to least cost planning.
Ensuring reliable energy, today and decades from now, requires steady, disciplined investment. The board approved TVA’s FY 2027 budget, putting TVA on a trajectory to invest more than $13 billion over the next three years. That includes more than $1 billion each year for our existing fleet and transmission system, and to build more than 4,100 megawatts of new generation capacity. You’ll see this in action by the end of the year, as we expect our new Cumberland Gas Plant, in Middle Tennessee, to come online bringing 1,500 megawatts of reliable energy to the system.
At the same time, we are addressing new demands from energy intensive industries like data centers and AI. Over the last six months, TVA has worked with 153 local power companies, updating our rate structure to keep energy costs low while meeting rapidly growing demand. TVA’s residential rates remain lower than about 80% of the nation’s top 100 utilities. Our industrial rates – those paid by our region’s job creators – are lower than 90%. That is a big deal and a huge competitive advantage to the Valley.
The board approved the creation of a data center rate, aligned to the administration’s Ratepayer Protection Pledge, that TVA signed in July. This rate also includes a “capacity commitment charge” that will ensure data centers cover their costs to serve their demand.
This structure protects affordability for families and Main Street businesses, while keeping TVA positioned to help advance future technologies and economic growth across our region.
And the Valley continues to grow. So far in FY 2026 alone, TVA helped attract $7.4 billion in capital investment, supporting an estimated 7,155 new jobs and retaining another 37,132. I am immensely proud of the work our employees do to make the Valley a great place to do business, serving companies with low-cost, reliable power.
TVA’s mission has always been about service, and that hasn’t changed. Thanks to the board’s strategic focus and the dedication of our employees, we’re building the right resources, adjusting rates responsibly and planning for a future that strengthens communities, supports economic growth and delivers the affordable, reliable energy that millions of people depend on every day.
Mike Skaggs is the interim president and CEO of the Tennessee Valley Authority.
This article originally appeared on Knoxville News Sentinel: How TVA is taking action to power Tennessee Valley’s future | Opinion
