Has anyone worked with TVA's economic development rates recently? I have a food processing client expanding their facility in Tennessee and they think they might qualify. The facility will add about 50 new jobs and increase their electrical load by roughly 2.5 MW. TVA's website is pretty vague about the actual qualification criteria.
Economic Development Rate Eligibility
Oscar - TVA's economic development rates can offer significant savings but the qualification process is pretty rigorous. They typically want to see substantial job creation (your 50 jobs should be plenty) and a commitment to maintain operations for several years. The key is working with TVA's economic development team early in the process - they can help structure the expansion to maximize benefits.
Thanks Randy! I'll reach out to their econ dev team. Do you know what kind of savings we might be looking at percentage-wise? Just trying to set expectations with the client.
It varies quite a bit depending on the specific rate schedule and commitment terms, but I've typically seen 15-25% reductions in overall electricity costs for qualified projects. The savings are usually structured as a declining credit over 3-5 years to encourage long-term commitment.