Chickamauga Electric signs long-term power agreement with TVA

The Tennessee Valley Authority building in Chattanooga is shown Wednesday, Nov. 2, 2016. / Staff file photo

A half century after splitting with Georgia Power and joining the Tennessee Valley Authority, the city of Chickamauga has become the latest local power company to sign a long-term agreement to buy most of its electricity from TVA.

Chickamauga Electric, which is one of the smallest of the 153 municipalities and power cooperatives that buy wholesale power from TVA and distribute it to its customers, signed a new agreement this week with TVA that requires a 20-year notice before the local power company can use another wholesale supplier for all but a small share of its power.

Chickamauga becomes the 142nd local power company to sign the new long-term pact with TVA, which the federal utility began offering last fall. To entice distributors to sign the rolling 20-year power purchase agreements, TVA began offering 3.1%