KNOXVILLE, Tenn., May 1 /PRNewswire/ -- The interest rate on the Tennessee Valley Authority 1998 Series D Putable Automatic Rate Reset Securities, traded on the New York Stock Exchange under the symbol "TVC," will be reset from 5.49 percent to 5.46 percent on June 1, 2008. Investors have the option of retaining their bonds with the new rate or requesting repayment at par value ($25 per bond). Investors who wish to return their bonds must contact the financial institution that holds the bonds to request repayment and authorize arrangements to be made on their behalf. Repayment arrangements must be completed with The Depository Trust Company no later than Thursday, May 22. Requests for repayment cannot be accepted directly by TVA. On June 1, TVA will pay $25 for each bond properly returned, plus a quarterly interest payment of 34.3125 cents per bond, reflecting the current annual interest rate of 5.49 percent. The 1998 Series D bonds mature on June 1, 2028. They can be identified by the CUSIP number 880591300. The 1998 Series D offering circular and additional information about the rate reset and repayment option is available on TVA's web site, at http://www.tva.com/finance. Copies of the offering circular may be requested by calling 1-888-882-4975, toll free. TVA is the nation's largest public power provider and is completely self-financing. TVA provides power to large industries and 159 power distributors that serve approximately 8.8 million consumers in seven southeastern states. TVA also manages the Tennessee River and its tributaries to provide multiple benefits, including flood damage reduction, navigation, water quality and recreation. CONTACT: John Moulton, Knoxville, (865) 632-8048 TVA News Bureau, Knoxville, (865) 632-6000 Investor Contact: (888) 882-4975 http://www.tva.com/finance DATASOURCE: Tennessee Valley Authority CONTACT: John Moulton, Knoxville, +1-865-632-8048; TVA News Bureau, Knoxville, +1-865-632-6000; or Investor Contact: +1-888-882-4975 Web Site: http://www.tva.com/

Copyright