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TVA ANNUAL INTEREST SAVINGS REACHES $200 MILLION

 TVA ANNUAL INTEREST SAVINGS REACHES $200 MILLION
 KNOXVILLE, Tenn., Aug. 17 /PRNewswire/ -- The Tennessee Valley


Authority sold $700 million of 30-year bonds by competitive bid today and as a result boosted its annual savings in interest expense to $200 million on financial transactions since 1989.
 A syndicate headed by the investment banking firm of Salomon Brothers Inc. submitted the winning bid. The other member of the syndicate is minority firm WR Lazard, Laidlaw & Mead Incorporated.
 The bonds have a coupon of 7 5/8 percent with an anticipated public reoffering price of 96.553, for a yield to the public of 7.928 percent. The cost to TVA was 96.053.
 "The savings in TVA's interest expense as a result of our financing activities will help us reach our goal of keeping electric rates stable through fiscal year 1995," said William F. Malec, executive vice president and chief financial officer. "We haven't increased our revenues through rate increases since 1987.
 "We are pleased that our sale of TVA securities in the public market and investor response to our bonds have allowed us to achieve these savings, which benefit all TVA customers."
 Malec said funds from the sale will be used to refinance part of the agency's debt held by the Federal Financing Bank. Since TVA returned to the public agency debt market in 1989, TVA has sold bonds on seven occasions, for total sales of $13.5 billion.
 All of the sales, with the exception of TVA's $1 billion of 50-year bonds that were sold in April 1992, have refinanced long-term debt. In the last 3 1/2 years, TVA has refinanced about two-thirds of its outstanding debt.
 During this period, TVA has reduced its average cost of long-term debt from 10.1 percent to 8.1 percent.
 -0- 8/17/92
 /CONTACT: William F. Malec, 615-632-3987, or John Moulton, 615-632-8048, both of TVA/ CO: Tennessee Valley Authority ST: Tennessee IN: UTI SU:


DF -- CH009 -- 0608 08/17/92 15:10 EDT
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Date:Aug 17, 1992
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