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FED ER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States for the Tennessee Valley Authority A Offering No. 4 0 T [T VSeptember 16, 1968 J Invitation for Bids on $75,000,000 of 126-Day TENNESSEE VALLEY AUTHORITY POWER NOTES Dated September 26, 1968 Due January 30, 1969 To Certain Commercial Banks, Trust Companies, and Dealers in Investment Securities: Following is the text of an invitation authorized by the Tennessee Valley Authority to be issued today to certain commercial banks, trust companies, and dealers in investment securities: Tennessee Valley A uthority ( “T V A ”) hereby invites bids for the purchase to the aggregate amount of $75,000,000 of its Power Notes ( “Notes”) dated September 26, 1968, due Janu ary 30, 1969. T he Notes w ill be issued on a discount basis and at m aturity their face amount w ill be payable without interest at the Head Office of the Federal Reserve Bank of New York. They w ill be issued in bearer form in denominations of $5,000, $10,000, $100,000, and $1,000,000 (m aturity value). Denomina tional exchanges may be effected at the Head Office of the Federal Reserve Bank of N ew York. Bids w ill be received at the Securities Department of the Head Office of the Federal Reserve Bank of New Y o rk up to the closing hour, 1:30 p.m., Eastern D aylight Saving time, Tues day, September 24, 1968. No bids w ill be accepted for a face amount of Notes less than $1,000,000. Bids must be for an even multiple of $5,000 and the price offered must be expressed on the basis of 100, w ith not more than three decimals, e.g., 99.925. Fractions may not be used. I t is urged that bids be made on the printed forms and forwarded in the special envelopes which w ill be supplied by the Federal Reserve Bank of New Y o rk upon application therefor. Invitations for bids are being issued to certain commercial banks, trust companies, and dealers in investment securities. Other commercial banks, trust companies, or recognized dealers in investment securities desiring to bid may do so on bid forms obtained from the Federal Reserve Bank of New York. Bids submitted hereunder must be for the principal account of the bidder and not for the account of others. Im m ediately after the closing hour, bids w ill be opened at the Federal Reserve Bank of N ew Y o rk, following which public announcement w ill be made by T V A of the amount and price range of accepted bids. Those submitting successful bids w ill be informed by the Federal Reserve Bank of N ew Y o rk of the acceptance thereof. T V A expressly reserves the right to accept or reject any or all bids, in whole or in part, and the action of T V A in any such respect shall be final. Settlement for accepted bids must be made at the Federal Reserve Bank of N ew Y o rk on September 26, 1968 in cash or other immediately available funds. The Notes w ill be issued to assist in providing capital for the power program of T V A . They w ill be negotiable. They w ill be payable solely from T V A ’s N et Power Proceeds (but may, at the option of T V A , be paid from the proceeds of refunding obligations or other funds legally available for such paym ent). N et Power Proceeds are defined in, and required to be applied according to, the Basic Tennessee Valley Authority Power Bond Resolution ( “Basic Resolution”). The Notes w ill not be obligations of, nor w ill payment thereof be guaranteed by, the United States of America. Income derived from the Notes w ill be subject to Federal income taxation; but in the opinion of the General Counsel for T V A , under present laws and decisions, the Notes w ill be exempt from personal property taxes and the income therefrom w ill be exempt from income taxes, now or hereafter imposed, by any State or local taxing authority. Circulars describing Tennessee Valley Authority and Power Notes issued by it, as well as copies of the Basic Resolution and periodic financial reports, may be obtained upon request directed to T V A ’s Director of Inform ation, Knoxville, T e n nessee, or to the Federal Reserve Bank of N ew York. This Bank will receive bids in accordance with the foregoing invitation up to 1:30 p.m., Eastern Daylight Savins time, Tuesday, September 24, 1968, at the Securities Department of its Head Office. Please use the form on the reverse side of this notice to submit bids and return them sealed in the enclosed envelope marked “Bid for T V A Power Notes ” Bids may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Settle ment must be made in immediately available funds at this Bank on Thursday, September 26, 1968. A lfred H ayes, President. ( over) No............. Bid for 126-Day Tennessee Valley Authority Power Notes Dated September 26, 1968 Due January 30, 1969 Dated at ............. 1968 To F e d e r a l R e s e r v e B a n k o f N e w Y o r k , Fiscal Agent of the United States for the Tennessee Valley Authority: Pursuant to the provisions of the Invitation for Bids issued by Tennessee Valley Authority inviting bids for the above-described Power Notes and printed on the reverse side hereof, the undersigned hereby offers to purchase such Power Notes in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below: $ ....................... (maturity value) or any lesser amount that may be awarded. Price.................per 100 (Price must be expressed with not more than three decimal places, for example, 99.925) Subject to allotment, please issue, deliver, and accept payment for the Notes as indicated below: Pieces M atu rity Value Denominations $ □ 1. 5,000 □ □ 10,000 □ undersigned 2. Ship to the undersigned 3. H o ld in safekeeping (for of member bank o n ly)* 4. 100,000 1,000,000 T otal * I f this item is checked, the undersigned hereby certifies that the Notes to be held in safekeeping w ill be owned solely by the undersigned. Payment w ill be made as follows: □ B y check in immediately available funds □ B y charge to our reserve account □ By wire transfer from another Federal Reserve Bank or Branch Name of subscriber (Please print) By ............................... (Authorized corporation officer or partner) T itle ........................... Address ..................... IN S T R U C T IO N S : 1. Submit all bids sealed in an envelope marked “Bid for T V A Power Notes.” 2. N o bid for less than $1,000,000 w ill be considered and each bid must be for an even multiple of $5,000 (m aturity value). 3. I f the language of a bid is changed from the foregoing in any respect, which, in the opinion of the Power Financing Officer of Tennessee V alley Authority, is material, the bid may be disregarded.