TVA’s 3,770-Megawatt Construction Build Positions Valley for Long-Term Growth

The Tennessee Valley Authority Board of Directors met Thursday to review progress on one of the largest generation construction programs in the agency’s history and to reinforce TVA’s role in keeping the region – and the nation – energy secure, economically competitive and positioned for long-term leadership.

The Board reported that the state of TVA is strong and has a clear growth plan. They noted that TVA’s dedicated employees remain the heart of delivering its mission, providing affordable, reliable energy to approximately 10 million people across seven states as the region experiences historic economic growth.

“TVA employees have continued to deliver on our mission of service, providing reliable electricity during rising demand, keeping our region’s electricity rates nationally competitive, and helping to grow our regional economy,” said Interim President and CEO Mike Skaggs.

To meet rapidly rising demand, the Board reaffirmed that 3,770 megawatts of new generation capacity are under construction – enough to power more than 2.1 million homes.

Major projects underway include:

TVA is building an energy system capable of powering America’s AI, advanced manufacturing and long-term competitiveness. TVA reported that earlier this month, it completed the initial test-fire of the new combined-cycle combustion turbines for the first time at Cumberland. That facility is expected to be operational by the end of this calendar year.

This expansion is needed to support the Valley’s growing industrial base and fast-growing communities. The region is experiencing one of the most significant periods of investment and economic growth in decades, with regional unemployment at 3.5 percent compared with the national average of 4.3 percent. TVA’s long-range resource planning and generation construction support this growth by providing:

• Reliable power for expanding industries and communities
• Energy security through a diverse and modernized generation mix
• A competitive regional economy backed by stable, low-cost electricity
• Leadership in nuclear and next-generation energy technologies

“TVA will focus on becoming more efficient and more nimble as we work to modernize the grid, increase reliability, improve resilience, and ensure our investments align with Valley and national needs,” Skaggs said.

Advancing America’s Energy Leadership

TVA’s work supports federal policy to strengthen U.S. energy security. National energy policy emphasizes unleashing American energy dominance to protect economic and national security. TVA’s record-scale construction program, advanced nuclear leadership and modernization of the nation’s largest public power system are central to that goal.

“TVA is fully aligned with the Trump administration’s energy dominance policy,” TVA Board Chair Mitch Graves said. “Affordable and reliable energy is one of the region’s strongest competitive advantages, and continued investment in dispatchable power is key to protecting that advantage for hard-working American families and businesses.”

Meeting Growing Regional Demand with Affordability and Reliability

The Board reviewed financial results through the second quarter of 2026, showing $6.6 billion in operating revenues and about 1% growth in electricity sales, with sales growth primarily driven by expanding data processing, hosting, and related services. TVA’s diverse generation portfolio, including nuclear, natural gas, hydroelectric, renewable, coal and storage resources, continues to support high reliability while enabling major capital investments.

TVA Chief Financial Officer Tom Rice reported strong financial performance in the first half of fiscal year 2026, allowing the agency to reinvest in critical infrastructure while maintaining some of the lowest residential and industrial electric rates in the nation.