Court Lends Support To TVA-Related Legislation

The Trigg Fiscal Court is voicing its support for legislation in the Kentucky General Assembly that would return money to counties powered by the Tennessee Valley Authority. On Tuesday, members passed unanimously a resolution endorsing the passage of House Bill 114 and Senate Bill 9, both of which would reinvest a portion of TVA in lieu of tax payments for economic development and job creation.

Currently, as a publicly-owned utility, TVA pays a fee to the Commonwealth in place of taxes. The House and Senate bills would instead distribute a portion of those payments equally among counties that have TVA property in them or purchase power from it.

If either of the bills are signed into law those funds would increase cumulatively over time to either 50 percent of the total in lieu tax payments or a maximum of $6,000,000. Trigg Judge-Executive Hollis Alexander says the county’s portion of that money could make a big impact.



Magistrate Jeff Broadbent inquired as to whether that change would affect utility rates. Speaking to that Alexander says it would not but rather give counties some say in how that money is spent.

Similar legislation was attempted in 2013 and 2016 but failed to make it out of committee. Alexander suggests there is more support this time around.



TVA was created by Congress in 1933 to address a wide range of environmental, economic and technological issues, including the provision of low-cost electricity. Today, it holds assets in 39 counties in South Central, Western, and parts of Eastern Kentucky, providing power to over 205,000 homes in the state. Last year it contributed over $35 million in in lieu tax payments to the state’s coffers.

WebReadyTM Powered by WireReady® NSI