Energy group blasts TVA plan

Energy group blasts TVA plan

By J. PATRICK WILLARD
The Knoxville Journal

A plan to limit the number of public meetings on the Tennessee Valley Authority rate proposal was blasted by a consumer group at the board meeting Friday.

Charlie Blair, a spokesman for the Tennessee Valley Energy Coalition criticized the board for planning only one public meeting on a proposed 7.9 percent rate increase in October.

TVA officials announced the public meeting will be held Aug. 17 at 6:30 p.m. at the TVA West Tower.

He noted that in the past a series of meetings have been used during the rate review process. He said the new policy would mean low- and moderate-income ratepayers throughout the valley would not be able to make their views known to the board under the new policy.

TVA Chairman Charles H. Dean said power distributors and local TVA offices would insure citizen participation in the rate review process. TVA officials also said ratepayers could make their views known through letters and calls to the agency's Citizen Action line.

Blair, however, charged the new policy was an indication of the utility's "siege mentality." "The 'one-public-hearing' policy will insure that the TVA board will not hear as many groups, as many individuals, as many opinions," he said after the meeting.

Besides unveiling recommended power rates for 1988, the board also approved capital project funds for $48.2 in repairs to three coal plants and two nuclear plants and adopted the final nuclear contract under its new performance contract method.

General Manager William F. Willis said he planned to hold up funding one of the repair authorizations until the project at Sequoyah nuclear plant brings its sewage treatment facilities into compliance with federal environment standards.

Willis revealed the project has been out of compliance for a year because of an increase of 220 employees at the site.

Willis said he would hold up the capital funds for a week while nuclear power personnel bring a temporary facility in place and arrange for a permanent solution to the sewage treatment problem.

The revelation that the site had been in violation of federal pollution laws prompted strong rebukes from Dean and Director John B. Waters. "It really shouldn't happen, Chuck," Waters told assistant nuclear power manager Charles C. Mason. "There's no excuse TVA being in a situation like this."

The board also approved a $47 million contract for general design and field support at Sequoyah for United Engineers and Constructors of Philadelphia, Penn. TVA officials estimated the contract will save $20 million over the cost of having the contract performed under existing contracts.

The contract was the last of those awarded under a new performance contracting method. The new contracting method makes awards on the basis of past performance, management and costs.

TVA officials estimate approximately $164 million has been saved using the method for large contracts at Sequoyah, Browns Ferry, and Watts Bar nuclear plants.