7SPC Board Meeting

In today’s rapidly evolving landscape, the energy ecosystem is more complex—and more essential—than ever. Every community, every business, and every innovation depends on reliable, affordable, and abundant power. At Seven States, we recognize this ecosystem—past, present, and future—is critical to unleashing American energy and empowering the Tennessee Valley. Many different forms of energy play a vital role in fueling today’s industries. From nuclear, coal, and natural gas plants that provide baseload reliability, to solar and battery storage that deliver power quickly to the grid, America can dominate this industry and lead globally given the abundant resources and technological advancements present in our country. At the core of our cooperative work is a mission that is as straightforward as it is powerful: megawatts. From the Southaven combined cycle gas plant we co-owned with TVA to the $439 million funding award we received earlier this year from USDA, Seven States has always been laser-focused on building and owning capacity of all sizes that deliver real, measurable impact. Our relationship with USDA opens the door to more potential funding for the Valley. As such, we have submitted for consideration additional funding requests up to $5.6 billion in financing capacity to acquire 4,000MW of utility-scale natural gas units and another $320 million to deploy 300MW of distribution-scale battery storage on 75+ project sites. By working incrementally with each customer and at-scale across the Valley, we are empowering our member-owner LPCs to meet consumer demand in an evolving utility marketplace. As a reminder, Seven States was awarded a $414 million zero-interest loan and $25 million grant to built utility-scale power generation in the Valley. Of note, while other projects throughout the Valley have been impacted by recent federal funding changes, the USDA New ERA funds awarded to Seven States remain intact and the project is progressing forward with a new site. Our mission is not just about preparing for the future; it’s about building the here and now. New power generation, reliability as a service, transportation infrastructure, and grid modernization are not concepts on a drawing board—they are real projects, powering homes, businesses, and institutions today. By anchoring innovation in present action, we ensure that the Tennessee Valley doesn’t just keep pace with change but sets a fast pace for energy leadership. In the end, understanding the energy ecosystem means recognizing its depth, complexity, and interdependence. At Seven States Power, we embrace that complexity as our opportunity—to deliver megawatts, unleash American energy, support economic development, and to lead the Valley into an energy future that honors where we’ve been while advancing where we must go. 

Investment Tax Credits (ITCs) remain one of the most effective tools available to local power companies (LPCs) and private businesses looking to accelerate energy infrastructure investments. With recent federal legislation revising eligibility and critical deadlines approaching, the time is now to use ITCs toward planned projects. Seven States has closely monitored every stage of legislative changes to the ITC policies, ensuring that project partners stay informed on evolving opportunities and risks. Beyond tracking policy shifts, Seven States has actively advocated for protecting ITC provisions to our federal, state, and local delegations, reinforcing their long-term value for the communities they serve. Following the passage of the One Big Beautiful Bill and subsequent changes by Treasury, here are seven key takeaways on how to utilize ITC to lower costs for anticipated solar and battery storage projects. Seven States recently completed its ITC registration of a battery storage asset and is prepared to guide project partners through these opportunities, as well as offer technical expertise, project management, and financing coordination to maximize every dollar of value. 1. Don’t Miss Critical Deadlines Timing is essential when it comes to ITCs. Credit rates often decline over time, and most projects must meet “begin construction” requirements by July 4, 2025 to secure the highest incentives. Proper documentation is essential to qualify. Seven States helps members stay ahead of these timelines with expert guidance on compliance, permitting, and project execution. 2. Battery Storage Projects Remain Eligible One of the most impactful updates to ITC policy is the protection of standalone battery storage. Moreover, ITCs help make solar-plus-storage a practical reality. These solutions provide load management, outage resilience, and support for emerging operational integrations. Seven States offers the know-how to design and finance these systems, helping members capture the full benefits. 3. Solar Projects Remain Eligible Solar energy continues to be one of the biggest beneficiaries of ITCs. By covering a significant portion of upfront costs, ITCs make solar projects more affordable and financially attractive for LPCs and businesses. This enables owners to grow their generation portfolios, reduce risk, and deliver cost savings to end users. Pairing ITCs with Seven States’ technical expertise ensures solar installations are optimized for performance and long-term community benefit. 4. Be aware of Foreign Entities of Concern (FEOC) Policies Recent updates to federal policy now restrict the use of ITCs for projects that source equipment or materials from “foreign entities of concern,” such as China. This shift makes supply chain diligence more critical than ever, as project owners must carefully select vendors and partners to ensure ITC eligibility and avoid costly disqualifications. Seven States can help navigate these evolving requirements by vetting technology providers, coordinating compliant procurement strategies, and reducing the risk of ineligibility—ensuring projects move forward with confidence and maximum financial benefit. 5. Financing Complexity Requires Expertise Navigating ITC rules, financing structures, and transferability provisions is not simple. The upside is substantial, but so is the complexity. Seven States provides the expertise needed to manage these elements, from structuring deals and securing tax equity to coordinating compliance. 6. The Cost of Waiting Is High Between phasedown schedules, rising project costs, and supply chain constraints, waiting to act can mean missing out on millions in incentives. Project Owners that move quickly will lock in higher ITC rates, secure financing on favorable terms, and be first in line for limited equipment and contractor availability. Seven States is ready to help move projects from planning to implementation before windows close. 7. Seven States Is Your ITC Partner Seven States brings deep technical knowledge and financial coordination expertise. As a trusted partner, Seven States can help LPCs and businesses identify the right projects, capture available incentives, and deliver more reliable energy at a lower cost. The time to act is now—and with Seven States, you don’t have to navigate the ITC landscape alone.