KNOXVILLE, Tenn. (AP) — The Tennessee Valley Authority is offering $1 billion in 10-year global power bonds bearing an interest rate of 1.875, the lowest interest rate ever on a TVA long-term bond.

TVA said in a statement Tuesday that the public utility issued the 10-year bond with a yield of 1.97 percent on Monday to use to pay down short-term debt. Fitch Ratings assigned a AAA rating to the bonds on Monday.

Chief Financial Officer John Thomas said that achieving the record low interest rate allows them to keep power rates low and supports their goal to provide lower-cost, cleaner energy by 2020.

TVA provides electricity for utility and business customers in Tennessee, Alabama, Mississippi, Kentucky, Georgia, North Carolina and Virginia to a population of over 9 million people.