TVA defends its use of renewable power

May 20, 2015 | By Barbara Vergetis Lundin

At a recent roundtable at the University of Tennessee's Howard H. Baker, Jr. Center for Public Policy, Senator Lamar Alexander grilled Tennessee Valley Authority (TVA) CEO Bill Johnson on its debt, overhead, and where it will get its power over the next 10 years.

TVA CEO Bill Johnson. Credit: Tennessee Valley Authority

As one of the hosts of the roundtable, Alexander called the utility out for its plans to increase reliance on what he referred to as "unreliable, high-cost renewable power."

Alexander asked Johnson, "Why change direction now? The goal is not more windmills. The law says that the goal is low-cost electricity. TVA is building emission-free nuclear plants and low-emission gas plants. It is putting pollution control equipment on its coal plants. Our air is demonstrably cleaner. What is the excuse for joining states that are raising their electric rates by using more unreliable, renewable power?"

TVA intends to purchase power from a planned 700-mile transmission line to be built by Clean Line Energy Partners -- as long as it is "cost-effective and reliable," according to Johnson.

To support his point, Alexander told Johnson, "Some of the states that rely more heavily on renewables in their generation mix have seen the largest increases in electricity prices over the past 5 years. From 2008 to 2013, the average price of electricity across the country went up about 3 percent. During that same period, the ten states with the highest percentage of wind power today saw their price of electricity rise an average of nearly 20 percent. TVA should stick to its mission of low rates and not be tempted to pursue the energy fad of the moment."

Johnson said that TVA's energy plan is flexible and includes a variety of energy sources in order to adjust to conditions appropriately while maintaining the lowest rates and highest reliability possible.

Despite all his grilling, Sen. Alexander does say that TVA is trending in the right direction.

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