TVA closes $2B lease-purchase of Cumberland gas plant, receives $1.93B upfront cash

Filed May 28, 2026 · Period ending May 21, 2026 · ~1 min read

Key Changes

• high

  TVA sold and leased back its Cumberland Combined Cycle gas plant for $2B ($200M equity, $1.8B debt), receiving $1.93B upfront to fund power program. TVA commits to 30 years of semi-annual rent payments through 2056 and regains ownership if not in default.

  Item 1.01 verify on EDGAR →
• high

  Rental payments can be accelerated immediately if TVA faces bankruptcy/insolvency or repudiates the lease, or 180 days after payment defaults. TVA must complete construction and achieve provisional acceptance by December 31, 2026.

  Item 1.01 verify on EDGAR →
• medium

  TVA created a direct financial obligation or off-balance sheet arrangement through this transaction, which may affect how the $1.93B inflow and future rent obligations appear on financial statements.

  Item 2.03 verify on EDGAR →