Tennessee Valley Authority PARRS D 2028 (TVC) 8-K Departure of Directors or Principal Officers

EXHIBIT 99.1

December 3, 2007

Tom Kilgore, WT 7B-K

John E. Long, Jr., WT 7B-K

REQUEST FOR APPROVAL – LUMP SUM PERFORMANCE AWARD FOR JOHN M. HOSKINS

Approval is requested to provide John M. Hoskins, Senior Vice President and Treasurer a lump sum performance award in the amount of $50,000.  This award is to compensate Mr. Hoskins for serving as Chief Financial Officer and Executive Vice President, Financial Services during the past nine months while the search was being conducted to find a permanent replacement.  In addition to the outstanding leadership demonstrated by Mr. Hoskins while serving in this position, he was instrumental in meeting the new Security and Exchange Commissions reporting requirements and directing key refinancing efforts.

If approved, the compensation action outlined above will be effective as soon as administratively practicable.

  /s/  Phillip L. Reynolds              

Phillip L. Reynolds

Vice President

Human Resources

LP 3A-C

GFB

cc:  W. A. Conkin, WT 8D-K

       M. H. Dunn, WT 6A-K

       K. R. Patterson, WT 4A-K

I CONCUR:

  /s/  John E. Long, Jr.                                              12/3/2007                                                   

John E. Long, Jr.                                                             Date

I APPROVE:

  /s/ Tom Kilgore                                                         12/3/2007                                                    

Tom Kilgore                                                                      Date