By The Associated Press
KNOXVILLE, Tenn. — The Tennessee Valley Authority’s payments in lieu of taxes increased by 9 percent to $550 million in fiscal 2010.
The utility has approved the final payment for the fiscal year that ended Sept. 30.
TVA said in a statement Monday that it makes the payments to eight states and 144 local governments where it conducts business or holds power-related assets.
The payments are based on power sales revenue from the previous year and the book value of TVA-owned power property in each state. TVA pays Illinois for coal reserves it has there. The total is expected to drop to $520 million this year.
Payments for fiscal 2010 were: Tennessee, $327 million; Alabama, $125 million; Kentucky, $49 million; Mississippi, $35 million; Georgia, $9 million; North Carolina, $3 million; Virginia, $1.3 million; and Illinois, $495,000.