Business: Tennessee Valley Authority Power Bonds 1998 Series D, 6.75% Putable Automatic Rate Reset Securities (PARRS), due 6/01/2028, issued in $25 denominations, not redeemable prior to maturity, and maturing 6/01/2028. <p> Initial distributions of 6.75% ($1.6875) per annum are paid quarterly on 3/1, 6/1, 9/1 & 12/1 to holders of record on the business day prior to the payment date (NOTE: the ex-dividend date is one business day prior to the record date). The initial Coupon Rate of the Bonds will be 6 3/4%. Beginning 6/01/2003 and on the same date each year thereafter, the Coupon Rate will be reset to a lower rate, if on the Calculation Date the 30 Year Constant Maturity Treasury rate (CMT) plus 0.94% is lower than the Coupon Rate in effect on the Calculation Date. If the Coupon Rate is reset to a lower rate, the holder can put (return) any or all of their Bonds to TVA and receive $25 for each Bond they put.<p> Distributions paid by these debt securities are interest and as such are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. <p> Units are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest. See the Offering Circular for further information on the PARRS by clicking on the ‘Link to IPO Prospectus’ provided below.