Tennessee Valley Authority entered three agreements tied to a lease-purchase financing for its Cumberland Combined Cycle Generation Facility. The deals include a 50-year Head Lease to Cumberland Combined Cycle Generation, a 30-year Facility Lease-Purchase to lease the plant back, and a Construction Management Agreement targeting provisional acceptance by Dec. 31, 2026. The counterparty raised $2.0 billion ($200 million equity and $1.8 billion secured notes), paying approximately $1,931,875,011 to TVA, with $68,124,989 reserved by a trustee for initial debt service and equity return. TVA will make semiannual rent payments from Nov. 15, 2026 through May 15, 2056 and expects the structure to support its power program and timely commercial operations.
Agreement 1: TVA Enters 50-Year Head Lease of Cumberland Facility With Cumberland Combined Cycle Generation
- Agreement type: Head Lease for Cumberland Combined Cycle Generation Facility
- Counterparty: Cumberland Combined Cycle Generation
- Signed / Effective: May 26 2026 / May 26 2026
- Duration / Termination: 50 years
- Reason: Monetize asset and support lease-purchase financing
Agreement 2: TVA Executes 30-Year Facility Lease-Purchase to Lease Back Cumberland Plant
- Agreement type: 30-year Facility Lease-Purchase (leaseback) for Cumberland facility
- Counterparty: Cumberland Combined Cycle Generation
- Signed / Effective: May 26 2026 / May 26 2026
- Duration / Termination: 30 years
- Reason: Secure long-term access, operations, and eventual ownership
Agreement 3: TVA Signs Construction Management Agreement to Achieve Cumberland Provisional Acceptance by Year-End 2026
- Agreement type: Construction Management Agreement for Cumberland facility completion
- Counterparty: Cumberland Combined Cycle Generation
- Signed / Effective: May 26 2026 / May 26 2026
- Duration / Termination: Through provisional acceptance (target Dec 31 2026)
- Reason: Advance completion to begin operations by Dec 2026
Original SEC Filing:
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