The utility’s board has approved a budget for FY 2009 of more than US$12.5B for operating expenses and a capital budget of just over US$2B.

TVA is also increasing rates to help recover costs of purchased power to replace the shortfall from hydro power resources. The utility’s fuel and purchased power costs have been budgeted to be more than US$2B higher in FY 2009.

An initiative has been launched to help reduce peak power demand by up to 1,400MW before FY2013.