The Tennessee Valley Authority and Muscle Shoals
On May 18, 1933, President Franklin D. Roosevelt signed into law the Tennessee Valley Authority Act, establishing TVA operations at Wilson Dam on the Tennessee River. This landmark legislation set the stage for electrification across the entire Tennessee Valley region.
On July 30, 1933, Mayor George L. McBride formally requested electric service for the City of Muscle Shoals. On October 14, 1933, the first TVA power connection was established — serving approximately 24 customers in the Highland Park area.
Building the System
By August 1934, MSEB had grown to 60 connected customers generating approximately $150 in monthly revenue. In November 1934, an additional 25 customers were connected following a system consolidation effort.
In 1935, the City invested $9,600 and received a $14,000 grant and an $18,000 loan for system reconstruction. That same year, the city executed its first 20-year power contract with the Tennessee Valley Authority.
Debt-Free at Ten Years
By 1944, MSEB was serving 344 commercial and residential customers. The system was valued at $38,750 — and had been entirely paid off through customer revenues.
A Modern Municipal Utility
Today in 2026, MSEB serves 9,061 customers with $36,088,717 in annual revenues and $47,038,174 in total assets. Under General Manager Matt Bernauer, the organization continues its mission of delivering safe, reliable, affordable electricity to the Muscle Shoals community.