KNOXVILLE, Tenn.--(BUSINESS WIRE)--The economic development programs approved by the TVA Board of Directors at its meeting here today should help preserve jobs and boost production of manufacturers in the Valley region, according to the group that represents TVA’s largest industrial customers.
“We appreciate that TVA’s senior management and board have recognized that TVA’s industrial rates are not as competitive as they have been in years past”
In comments after the board meeting, Pete Mattheis, chairman of the Tennessee Valley Industrial Committee (TVIC), said he felt many manufacturers would make the required commitments in order to qualify for the programs approved today.
“We appreciate that TVA’s senior management and board have recognized that TVA’s industrial rates are not as competitive as they have been in years past,” Mattheis said. “We commend them for taking the first steps toward solving this problem, and look forward to a continuing cooperative effort with TVA and the Valley’s local power companies with the mutual goal of retaining and growing manufacturing jobs in the region.”
TVIC’s members are predominantly energy-intensive operations in which the cost of electricity can be the largest single element in the overall cost of production—sometimes in excess of 80 percent. They operate in approximately 50 locations across the Tennessee Valley, and manufacture primary metals, forest products, chemicals and similar products.
To qualify for the programs approved by the TVA Board today, industries will have to make certain contractual, job growth or plant investment commitments that will benefit the overall TVA power system and thereby all of its customers.