KNOXVILLE (AP) — The Tennessee Valley Authority is offering 10-year power bonds for the first time since 2012.

According to a news release, the utility has priced $1 billion of the new bonds with an interest rate of 2.875 percent.

The bonds mature on Sept. 15, 2024, and are not subject to redemption prior to maturity. Interest is to be paid semi-annually each March 15 and Sept. 15.

TVA is the nation's largest public utility, serving about 9 million people in parts of seven southeastern states.

TVA receives no funding from taxpayers. It is funded with revenues from power sales and power program financings.

The utility says the proceeds from the bond sale will be used to refinance existing debt or for other power system purposes.