CHATTANOOGA – Today the Trump administration released the Legislative Outline for Rebuilding Infrastructure in America, a framework to address improvements to the nation’s transportation, energy, utility and healthcare needs. Among the items included in the plan was a proposal to sell the Tennessee Valley Authority’s transmission assets.
In response to the administration’s proposal, the Tennessee Valley Public Power Association, the Tennessee Electric Cooperative Association and the Tennessee Municipal Electric Power Association share the following response:
- We strongly support the public power model and are fearful divestiture of transmission assets would have a negative effect.
- We recognize the importance of TVA’s transmission assets to the ratepayers of the Tennessee Valley, and we believe they should not be sold to interests who may not place a priority on public power or the Valley’s interests.
- It is important to note that Congress has not appropriated money to TVA since 1992, and customers have paid back the initial investment plus interest.
- According to a 2013 study by the Howard H. Baker Jr. Center for Public Policy, TVA has returned to the U.S. Treasury more than $3 billion on the government’s original investment of $1.4 billion. Source of these funds are the Valley’s ratepayers.
- Our respective organizations will pursue all options to protect electric ratepayers and the TVA assets they have paid to build as well as the public power model, which is as relevant today as it was 80 years ago.
- Divestiture of part or all of TVA assets has been proposed in the past. Each time, Congress has vehemently rejected such privatization.
- Proceeds from the sale of TVA’s transmission assets would go to the U.S. Treasury and would not benefit Valley ratepayers.
A complete copy of the Legislative Outline for Rebuilding Infrastructure in America is available on the TECA website.