Table 6. Computation of Implied Interest Rate Support to the Tennessee Valley Authority
| Item | TVA | Aa IOU Rate | A IOU Rate | Baa IOU Rate |
| Outstanding Debt (Million 1999 Dollars) | 23,717 | 23,717 | 23,717 | 23,717 |
| Interest Paid/Implied (Million 1999 Dollars) | 1,605.6 | 1,682.7 | 1,759.1 | 1,853.2 |
| Average Rate Differential, 1980-1998 (Percent) | -- | 0.325 | 0.647 | 1.044 |
| Implied Support (Million 1999 Dollars) | -- | 77.1 | 153.4 | 247.6 |
| Note: Most of the dollar values appearing in this report have been converted to 1999 dollars using the Gross Domestic
Product (GDP) deflator. The GDP deflator was applied to companies' prior year loan and interest data. Although the values
on the companies' balance sheets and income statements do not change from year to year, the purpose of the calculation
was to estimate Federal Government support in a consistent framework. The framework chosen was the value of Federal
Government support in terms of its 1999 purchasing power. The 1999 GDP deflator was 22 percent higher than the 1990
value and 1 percent higher than the 1998 value. Sources: Tennessee Valley Authority, Annual Report 1998 (1999), and Moody's Investor Service, Utility Manual 1998. | ||||
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File last modified: July 10, 2000
URL: http://www.eia.doe.gov/oiaf/servicerpt/subsidy1/tbl_6.html
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