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Dawn Best had sued the federal utility in 2015 after she claims she was passed over for a promotion to TVA general manager for Mississippi.
The lawsuit says the job went to a younger man who did not have the minimum experience required for the position.
Best's attorney, Jim Waide, says his client had spent more than 20 years as an engineer with TVA and had support from managers of several utilities across Mississippi.
The 5th U.S. Circuit Court of Appeals reviewed the appeal of a jury verdict in favor of TVA and concluded a judge erred by calling a jury back to quickly after sending it back to deliberate further when one juror said she didn't agree with the majority.
She later changed her vote.
The case will now return to U. S. District Court for a new jury trial.