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State and local governments received more than $505 million in lieu of tax payments in 2009 from Tennessee Valley Authority, an increase of 10.5 percent from the previous year, according to a release from the utility agency on Thursday. Tennessee's share of that payment was more than half of that total -- $295 million.

TVA's Board of Directors approved the final payment of this fiscal year Thursday, as well as an estimated payment in 2010 of $538 million.

TVA makes tax equivalent payments to eight states and to local governments within those states in accordance with the TVA Act. Payments made during 2009 were based on TVA power sales revenue in 2008 and TVA-owned power property in each state. During the fiscal year, TVA makes monthly payments based on preliminary forecasts.

In addition to the seven states in the TVA service area, the public utility makes payments to Illinois for coal reserves in the state owned by TVA.

In addition to Tennessee, total payments by TVA to each state and county for fiscal year 2009 were:

-- Alabama, $120,050,550;

-- Georgia, $7,849,769;

--Illinois, $461,355;

--Kentucky, $46,397,977;

--Mississippi, $31,675,568;

--North Carolina, $2,573,390;

--and Virginia, $946,441.