KNOXVILLE, Tenn. – The Tennessee Valley Authority said Thursday it would extend $1 billion in credit to local power companies feeling a financial crunch due to the coronavirus outbreak.
TVA CEO Jeff Lyash said the power provider’s board of directors approved the credit Wednesday.
“We recognize this is going to be an economically challenging time,” Lyash said.
Power companies could see financial hardships as businesses and industries shut down, as residential use rises and as customers become unable to pay their bills, Lyash said. Those companies will be able to defer their wholesale power payments for a period during the ongoing COVID-19 response, and an appropriate repayment plan will be put in place.
“They can stay focused on supplying the electricity everyone needs,” Lyash said.
TVA works with 154 local power companies in seven states, including Alabama.