Residence rate hike approved by TVA

Residence rate hike approved by TVA
By Amy Geisel
News-Sentinel business writer

TVA's decision to raise household electric rates 2 percent drew nary a comment at the agency's board meeting Wednesday, but its action to resume work at Bellefonte Nuclear Plant created a cry.

As expected, Chairman John Waters and Director Bill Kennoy approved notifying the Nuclear Energy Commission within 120 days that TVA intends to resume engineering work at Bellefonte and award $500 million worth of contracts to private companies.

Meanwhile, the board raised electricity rates 2 percent for residential customers and decreased rates for businesses and industries by 1.6 percent.

The rate adjustment came as a result of re-evaluating the benefits residential customers receive from low-cost hydroelectric power. TVA has a longstanding policy of lowering residential electric bills by a fixed monthly amount plus a reduction in the price paid for every kilowatt-hour used. The hydroelectric system had not been re-evaluated since 1986.

Waters and Kennoy refused to take questions during the meeting, but at a news conference following, Waters acknowledged that officials did not explore alternatives for power supply in making its decision to begin spending $2 billion to finish the two reactors in northeastern Alabama.

"Bellefonte is already past that," Waters said, noting the agency has invested $4.3 billion in the two reactors since 1974.

Oliver Kingsley, president of TVA's Generating Group, acknowledged TVA has not studied the environmental impact of operating the nuclear plant since the early 1970s, when the project was initiated.

Stephen Smith, president of the Foundation for Global Sustainability who spoke on behalf of the Tennessee Valley Energy Reform Coalition, said TVA's refusal to conduct such a study may run counter to federal requirements.

Another speaker, Mary Robinson, whose home is within a mile of Bellefonte, noted the impact of TVA's decision.

The economy in northeastern Alabama has suffered from the fluctuation in the work force at Bellefonte, Robinson said. Existing industry has left the area because of rate hikes associated with TVA's nuclear buildup, she claimed.

Robinson, the mother of a 3-year-old son, gave an impassioned plea for Waters to consider the children who could be exposed to radiation and stricken with cancer or leukemia after a nuclear accident.

David Stuart, who holds the elected position of Anderson County attorney and who in private practice has represented a TVA whistle-blower, told the board he was "somewhat shocked at the way the board conducts this meeting."

"In Anderson County we have a $30 million annual budget and much more deliberations on much smaller matters," Stuart said. "I think this process is backward."

Waters defended his decision. Referring to critics' statements that TVA has overestimated its power needs for the future, he said he worries that TVA won't have enough power to supply demand after 2000. One reactor at Bellefonte is scheduled to come on-line between 1998 and 2001 and the second one between 2001 and 2002.