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Seven States Power Corporation (Seven States) is exploring opportunities to deliver new power generation to the Tennessee Valley. The effort is bolstered by a landmark $415 million zero-interest loan and $24 million grant from the U.S. Department of Agriculture Rural Utilities Service (USDA RUS), designed to meet the growing demand for power while strengthening grid reliability. The opportunity signals a creative solution toward advancing American Energy Dominance in the southeast region. “We are excited to get underway with this first of what we hope will be a number of USDA-assisted projects across the Tennessee Valley,” said Betsey Kirk McCall, President and CEO of Seven States Power Corporation. “We understand this initiative aligns with national priorities on energy dominance and security.” The project is intended to use domestically produced solar panels and battery storage that tie into the electric grid, generating a new source of affordable solar power for residential and commercial customers and providing a new source of stored energy that can be used to meet peak demands as needed. The project is proposed to be constructed on industrial land owned by the Economic Development Growth Engine (EDGE) and subleased to Seven States. “MLGW is supporting Seven States in this effort by exploring the feasibility of this project as a way to strengthen and modernize our grid to create greater reliability for our customers and potentially help us maintain some of the lowest electric rates in the country,” said Doug McGowen, President and CEO of MLGW. A subleasing arrangement approved by EDGE is the first step toward this innovative solution. Seven States and MLGW will continue to assess the best technical and contractual path forward to delivering more than 200MW of solar generation and battery storage. This collaboration illustrates how federal funding, coupled with local partnership, can accelerate how energy is generated and transmitted to strengthen the grid. This new generation could serve a growing Shelby County and Tennessee Valley by December 2027. ### About Seven States: Seven States Power Corporation is a generation and transmission cooperative with a mission to leverage innovative technology to design, develop, and deploy energy solutions, together with more than 100 member-owner local power companies, across the Tennessee Valley. A key aspect of Seven States’ formation was the ability to finance utility-scale generation assets, expand energy production, and modernize infrastructure to support the growing grid. About MLGW: MLGW is the nation's largest three-service municipal utility, serving more than 440,000 customers. Since 1939, MLGW has met the utility needs of Memphis and Shelby County residents by delivering reliable and affordable electricity, natural gas, and water service.

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.

On September 4, 2025, Tri-County EMC, in partnership with Seven States Power Corporation, TVA, TDEC, and Tennessee Tech University celebrated the ribbon cutting of 4 new EV Fast Chargers, marking another step forward in building transportation infrastructure which supports the numerous auto manufacturers in the area. These stations provide EV drivers with the ability to charge quickly and conveniently. The installation of these new charging stations represents not only an investment in technology but also an investment in the communities served by Tri-County EMC. By offering reliable, high-speed charging, the cooperative is making it easier for residents, visitors, and businesses to travel, commute, and explore all their community has to offer. The project showcases the power of collaboration between local power companies and Seven States Power Corporation in driving innovation across the Tennessee Valley to support economic development and growth of the region.

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.

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.

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.” ###

Serving McMinnville Electric System (MES) as General Manager, Brittany Davis leads her team with an eye on the grid of the future, and her expertise has given her an opportunity to set her community’s infrastructure up for long-term, sustainable success. “We are prioritizing critical infrastructure enhancements, including the reconstruction of two existing substations and the addition of a third to support increasing load demands. The new substation is designed not only to absorb future growth but also to provide contingency support, enhancing system reliability during both planned and unplanned maintenance events. Systemwide voltage regulation upgrades are also essential to improve operational efficiency and grid stability. Additionally, the completion of our distribution automation project—featuring the deployment of S&C IntelliRupters—will significantly bolster system reliability and support our transition toward a more modern, resilient grid.” With all the changes taking place in her LPC footprint, Brittany wants her community to know that their comfort and security are at the forefront of every decision she makes. “When I came on board at MES, it was clear our infrastructure needed attention. I helped develop a strategic plan to address those needs, and we’ve just received board approval to move forward. The plan focuses on modernizing our substations, upgrading relaying technology, and improving system reliability. While we’re still early in the implementation phase, I’m proud to drive efforts that will bring meaningful, long-term benefits to our community through innovation and smarter infrastructure.” Brittany credits Seven States as being a valuable partner for MES as the needs of her community have continued to evolve. “Seven States has been an invaluable partner in fostering innovation within our community. Their active involvement in the car charging project at Ascension St. Thomas – River Park Hospital was instrumental in expanding EV accessibility within Warren County. Additionally, their support in helping us with the install of the latest car charger project in collaboration with Tennessee Tech University has brought advanced technology to our region, further enhancing sustainability efforts and modernizing existing infrastructure.” As technology continues to advance across the Valley, Brittany’s advice to future managers who want to lead well is to lean into new and innovative opportunities with optimism and determination. “Embrace change. Technology and innovation evolve rapidly, and while past methods may have worked, that doesn't mean they remain the best solution. Assess your community’s needs, make informed financial decisions, and take decisive steps toward progress. Most importantly, never let a rejection deter you—persistence often leads to new opportunities. If the answer is no today, ask again tomorrow.” ###