Sansom vouches for TVA business modelApr 19 - Ed Marcum The Knoxville News-Sentinel, Tenn.
TVA Chairman Bill Sansom reiterated his view Thursday that the TVA business model is a good one and there should be no problem with the Obama administration conducting a review of whether TVA should be sold. Sansom made the remarks during a Tennessee Valley Authority board meeting in Columbia, Tenn., in which the board also voted to approve the creation of a citizens' advisory group on energy resources. A strategic review of TVA proposed in President Barack Obama's 2014 budget should show that the TVA model, which relies mainly on revenue from the sale of electricity and from borrowing money at low interest, works very well, he said. However, there are areas in which TVA can improve and the review might be good for the agency, he said. Under a section of his budget titled "Reform TVA," the president said TVA will likely have to exceed its $30 billion debt cap in order to upgrade aging infrastructure, meet new environmental regulations and produce power for future demand. Although it receives no tax dollars, TVA debt counts in the federal deficit. The proposal calls for review of TVA, including whether TVA should be divested from government ownership. At the meeting, the TVA board voted to establish the Regional Energy Resource Council. TVA President and CEO Bill Johnson described this as a formal channel for TVA to receive diverse perspectives on energy issues. The 20-member council will include seven people nominated by the governors of each of the seven states served by TVA. It will also have two people each from among distributor customers, industrial customers; non-governmental organizations such as those dealing with environmental and energy issues, chambers of commerce and community development and academic and research centers. The council will also have three at-large members. The board also approved an extension of a joint ownership agreement and potential lease-purchase transaction with Seven States Power Corp. so TVA can continue to operate and maintain the Southaven Combined Cycle Gas Plant in DeSoto County, Miss. The current agreement between TVA and Seven States was due to expire April 23. TVA CFO John Thomas told the board that revenues of $4.43 billion through February were slightly below plan but are being offset by lower expenses. In other action, the TVA board approved a supplement to a contract with Day and Zimmerman NPS for nuclear plant modifications and maintenance. It also approved srecommendations on the rate review process for local power companies distributing TVA electricity and guidelines on the use of revenue by local power companies. TVA provides electricity for more than 9 million people in seven southeastern states. |