Press Mention Knoxville News-Sentinel June 14, 2000
Topical Mention
Bill would force TVA to sell nuclear, coal plants
In this mention
A bill introduced by Rep. Rodney Frelinghuysen and three other House members seeks to force the Tennessee Valley Authority to sell its nuclear and coal-fired power plants to reduce the agency's $26 billion debt. TVA spokesman Steve Bender opposes the measure, arguing that asset sales would not benefit the Tennessee Valley or the nation. The bill reflects broader congressional debate over electricity industry restructuring.
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Full transcript
Bill would
force TVA to
sell nuclear,
coal plants
By Richard Powelson
News-Sentinel Washington bureau
WASHINGTON - Four House members introduced a bill Wednesday seeking to force the Tennessee Valley Authority to sell its operating nuclear and coal-fired plants, in which the federal corporation has invested nearly $23 billion.
Rep. Rodney Frelinghuysen, R-N.J., a frequent critic of TVA, is the prime sponsor of the bill, and said the sales would help the Knoxville-based power provider to greatly reduce its $26 billion debt.
Congress is expected to debate, but not pass, legislation this year to restructure the electricity industry. TVA hopes to expand - not reduce - its service area and power production.
About 73 percent of the power that TVA provides to portions of seven states, including Tennessee, comes from nuclear and coal-fired power plants.
"We don't see how selling off these assets would help anyone in the (Tennessee) Valley or the nation," said TVA spokesman Steve Bender.
About 19 percent of TVA's power comes from hydroelectric systems mostly at dams, and 8 percent is from turbines powered by natural gas or oil, TVA records show.
John Moulton of TVA said the agency's original investments in hydro facilities were about $1.5 billion. About $8 billion was spent on coal-fired power plants.
Later, TVA spent about $14.7 billion on three completed nuclear plants: two in Tennessee and one in Alabama, he said. Several other nuclear plants were started at additional expense, but not completed.
TVA did not have an immediate estimate of the current market value of its nuclear and coal-fired plants, Moulton said.
The agency also has spent $3.4 billion on its power transmission system, and about $400 million on combustion turbines.
Frelinghuysen spokesman Mark Broadhurst said his boss wants TVA's future considered in broad legislation to restructure the electricity industry, which is being debated in House and Senate committees this month.
TVA should return to much of its original mission of flood control on the Tennessee River, maintaining navigation on the river; and producing power from generators at dams, the New Jersey member said.
Others so far backing the bill are Reps. Martin Meehan, D-Mass.; Bob Franks, R-N.J.; and Mark Foley, R-Fla.
Richard Powelson may be contacted at 202-408-2727, e-mail PowelsonR@shns.com or www.shns.com.