Battery Storage Is Charging Up
January 23, 2023

The Tennessee Valley has an opportunity to lead the nation in battery storage technology .  As its members, the Local Power Companies (LPCs), explore battery storage options, Seven States is the go-to partner to streamline the process, aggregate projects for grant funding, and facilitate a successful deployment. Seven States has broad experience building partnerships to deploy a variety of different storage technologies, including at the US Space and Rocket Center , the University of Memphis , and Nissan’s manufacturing plant in Smyrna, TN.

Through their work with battery storage, LPCs continue to explore how this technology can enhance the reliability, resiliency, affordability, and sustainability of their operations.  For example, battery storage units can be dispatched effectively during valley-fill generation periods and provide high confidence generation for day-ahead programs that complement demand response programs. Reducing the monthly on-peak and all-peak demand can save an LPC more than $10 for each kW reduced. Understanding typical monthly load curves and strategically deploying battery storage units are key to optimizing this untapped opportunity.

Additionally, battery storage allows for end-of-line voltage support and serves as a core generation source for a microgrid. In other parts of the US, battery storage is used to provide ancillary transmission support services.

True to its purpose as a hub for innovation and information sharing, Seven States released two RFIs in 2022 to study the battery storage market. The results revealed two primary approaches to pricing for LPCs: leasing or owning. While leasing costs over the life of the project are expected to be higher than if the LPC purchases the system directly, it allows the LPC to minimize risk.  Direct ownership may yield lower costs; however, the LPC assumes operational risk.

In 2022, the battery storage market experienced unprecedented demand as well as unprecedented supply issues with core materials associated with lithium batteries. Battery prices increased by 7% in 2022, according to a recent Bloomberg report. Several utility battery manufacturers are switching to lithium iron phosphate (LFP) batteries because core materials are available and less expensive. As this transition continues and new battery manufacturing plants open in the US, prices are expected to levelize.

The Inflation Reduction Act of 2022 (IRA) provided new tax incentives for battery storage both by expanding the number of entities who are eligible and by raising the maximum potential savings percentages.

State and local governments (and political subdivisions thereof) are now eligible to receive the investment tax credit (ITC). Standalone battery storage projects are now eligible for ITCs (previously, battery storage was not eligible for the ITC unless it was tied to a solar array). The legislation also raised the maximum ITC rate from 26% to 30% — with some projects now even eligible to receive up to 50% in credit if the project meets additional requirements.

Federal tax incentives and market forces are combining to make battery storage solutions a better bet for LPCs in the Valley. If you want to learn more about battery storage for your LPC, give Seven States a call.

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By Jessica Bradshaw June 25, 2025
Seven States Power Corporation’s Board Chairman, Jeff Dykes, and President & CEO, Betsey Kirk McCall, met with Congressional leaders earlier this summer as part of a strategic initiative to advance funding to install technologies that make power more efficient, reliable, and abundant. Dykes and McCall sought to amplify the need for greater federal support to Tennessee Valley LPCs for increasing America’s energy infrastructure during a time where creative options are needed against the backdrop of unprecedented growth. A primary objective of the trip was to listen to legislators’ areas of focus and educate the leaders on how Seven States supports the Valley through times of transition. Many LPCs have voiced concerns over the volume of requests they are receiving to supply energy to data centers. Dykes and McCall emphasized the opportunities Investment Tax Credits (ITC) and alternative financing provide for accelerating large-scale projects that can supply this growing demand for energy. To date, more than 1200 data centers are in development across the U.S. that will consume an estimated 149.6 -239.3 TWH annually. That represents the equivalent of 15-25 large nuclear plants running continuously to supply the need. Dykes and McCall stressed how cooperatives like Seven States can leverage funding models that alleviate the capital outlays for and accelerate construction of projects that can accommodate the expected growth in the Valley over the next decade from these data centers. “It will take LPCs, TVA, communities, companies, and developers working together on such projects to meet the need and keep the lights on,” said Dykes. “We understand that these data centers represent an opportunity for investment in the region. These dollars will improve communities and attract high quality economic development prospects. We want to ensure our member LPCs and TVA are supported and prepared to deliver this opportunity to the Valley,” said McCall. Dykes and McCall also underscored that Seven States was created by LPCs, in partnership with TVA, as a strategic solution to TVA’s debt ceiling limitations—without amending the TVA Act. From 2007 to 2013, Seven States became the first —and remains the only— LPC-led organization to successfully negotiate a sale/leaseback agreement with TVA to co-own a utility-scale generation asset: the Southaven 800MW Combined Cycle Gas Plant. This makes Seven States uniquely qualified as an in-Valley solution to finance and co-own generation assets with TVA.  “Seven States was created for moments like this. We often serve as the designer or developer, deploying capital and project management expertise to build reliable or advanced energy infrastructure on behalf of LPCs. This allows LPCs to avoid the burden of raising capital or navigating complex regulatory issues,” said McCall. Another key focus of the trip was to share project updates on the $439 million in funding secured earlier this year through the U.S. Department of Agriculture’s New ERA program. Dykes and McCall outlined how this investment will be used to deliver 250MWs of additional power—aligning with national priorities on energy dominance and security. While in Washington, the team also met directly with USDA officials to provide a progress report on the project. “We are at a pivotal moment where federal partnerships can accelerate the progress our members are already making,” McCall said. “Our goal is to ensure their contributions—and their challenges—are clearly understood as Congress shapes the future of energy policy.” More recently, McCall was also in the area conducting meetings during President Trump’s One Big Beautiful Bill event where Zach Stewart of Sequachee Valley Electric Cooperative was among those recognized for their service to the nation in the energy industry. McCall was on site as the new Rural Utilities Services Administrator at USDA, Karl Elmshaeuser, was announced. McCall met with Christopher McClean, former Acting RUS Administrator as part of a series of meetings to further map project details related to the $439 million awarded to Seven States by USDA. By engaging directly with lawmakers and federal agencies, Dykes and McCall are working to ensure that regulatory frameworks reflect on-the-ground realities. These Washington outreach efforts reinforce Seven States’ commitment to building an energy system that is affordable, reliable, and future-focused. Dykes and McCall expect continued conversations throughout the year as the Valley’s energy future takes shape.
By Jessica Bradshaw June 25, 2025
Seven States recently had the privilege of partnering with the Chattanooga Area Food Bank to provide consulting support for energy efficiency upgrades at their main distribution facility. Serving 20 counties across Southeast Tennessee and Northwest Georgia, the Food Bank distributed over 15 million pounds of food last year—equivalent to more than 12 million meals for families in need. With such a vital and energy-intensive operation, improving energy performance means more resources can go directly toward feeding the region. Our team conducted a comprehensive energy assessment, identifying key opportunities to reduce utility costs through more efficient lighting, refrigeration, and HVAC systems. These recommendations are expected to cut energy use by up to 25%, translating into substantial cost savings over time. By optimizing energy performance, the Chattanooga Area Food Bank can reinvest those savings into expanding food access, enhancing logistics, and continuing their mission to eliminate hunger and promote healthier communities.  This collaboration not only underscores the connection between energy efficiency and social good, but also highlights how thoughtful upgrades can deliver lasting value for mission-driven organizations. We're proud to support the Food Bank’s critical work and look forward to seeing the positive ripple effects of this project across the communities they serve.
June 19, 2025
Leading Forked Deer Electric Cooperative as General Manager & CEO, Jeff Newman has firsthand knowledge of how vital technology is to the Valley and what a difference it has made in his community. “In our footprint, two of the most critical technology developments were broadband expansion and system automation. Bringing our system up-to-date has been a top priority, and that started with implementing SCADA across the network—a process that’s still ongoing. SCADA has already made a significant difference by improving our ability to detect and respond to outages quickly, which greatly reduces downtime for our members. On the broadband side, we now serve over 6,800 folks, which represents a substantial portion of our total meters. In a rural area like ours, access to high-speed internet isn’t just a convenience, it’s a necessity. It’s been a game changer, and the revenue from broadband has helped stabilize our electric rates by offsetting the need for larger increases. So, these technology developments haven’t just modernized our infrastructure—they’ve directly improved quality of life and economic resilience for the people we serve.” As the Valley continues to evolve and technology changes, Jeff views Seven States as a trusted partner that can help LPCs find the best fit for their community. “The biggest thing for us, as a rural utility, was having someone to help us get connected with the right people—whether that’s suppliers, vendors, or experts. We really leaned on Seven States for that support because, honestly, we didn’t even know where to begin. Every utility is different, and there’s no one-size-fits-all solution. You have to do what makes sense for your system and your community. A cookie-cutter approach just doesn’t work in this industry, and Seven States knows how to tailor a project or service to fit your exact needs.” Jeff’s advice to GMs who want to bring innovation to their communities is to stay open to progress by listening, learning, and ensuring new ideas truly serve the needs of the ratepayers. “I don’t take credit for the changes we’ve made, but progress happens when you don’t stand in its way. It’s important to evaluate new ideas carefully, make sure they align with your system’s needs, and support what makes sense. The key is to always consider what’s best for your LPC or co-op—and not become an obstacle to improvement.” ###
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