TVA chief unveils plan shifting away from nuke power

TVA chief unveils
plan shifting away
from nuke power
2020 report proposes an ease
out of 'construction business'
By Jerry Dean
News-Sentinel staff writer

Citing a major policy shift in
his agency's future, TVA Chair-
man Craven Crowell unveiled a
plan Wednesday that includes
TVA's intention to convert at
least one nuclear power plant to
fossil fuel and to ease itself "out
of the construction business" by
2020.

Achieving such goals, Crowell
predicted, will little affect the
size of TVA's remaining work
force. The process, he added, may
begin with conversion of TVA's
Bellefonte nuclear plant to use of
fossil fuel — coal or natural gas.
And that conversion, he said,
should boost the number of Belle-
fonte workers, at least in the
plant's construction phase.

The changes are part of a draft
of TVA's integrated resource
plan, Energy Vision 2020, which
also includes an environmental
impact statement.

"This preliminary report,"
Crowell said, "confirms my view
that TVA should look to a fuel
source other than nuclear to
meet future energy needs."

The report also outlines "en-
ergy options" TVA would consid-
er. Crowell said, "as we prepare
to compete in a deregulated envi-
ronment."

Crowell released the 180-page
report during a news conference
at TVA headquarters. He said the
volume was for public scrutiny
and that of a 17-member Energy
Vision Review Group. At least
one member of that panel voiced
dissatisfaction with the plan's
lack of energy conservation em-
phasis.

Crowell said changes proposed
would trigger no cuts in TVA's
16,500-member work force, re-
duced by half since 1988.

"I see no impact on jobs in the
Valley," Crowell said. He predict-

"This preliminary
report confirms my
view that TVA should
look to a fuel source
other than nuclear to
meet future energy
needs."
Craven Crowell
TVA chairman

ed TVA "work force stability, at
least through 1996."

Crowell unveiled the plan on
the eve of a meeting today be-
tween TVA staffers and represen-
tatives of the General Accounting
Office, Congress's watchdog
agency, now investigating TVA
operations.

Amid reports that GAO may
urge privatizing TVA, Crowell
said he would meet with GAO
only if its comptroller agreed to
meet before release of GAO's
TVA draft report. In his experi-
ence, Crowell said, such drafts
typically were first "given to
some favored reporter" on Capi-
tol Hill.

Crowell said GAO proved
"quite defensive about my com-
ments" made recently in TVA's
behalf. "If they were so sure of
their report, they wouldn't be so
defensive," he added. He said the
worst aspect of a pending GAO
report might be "pressure on us
to raise rates."

In TVA's draft plan for 2020,
as outlined by Crowell:
■ TVA would perform a two-
year study to learn if it should
convert to fossil fuel TVA nuclear
units near Hollywood, Ala.
■ Construction of a second
Watts Bar nuclear unit, near

Spring City, would stay "de-
ferred" until a Bellefonte conver-
sion study was done. Crowell said
TVA was pleased with progress
on Watts Bar's Unit 1.
■ TVA should consider "a
range of energy options" as the
agency "prepares to compete in a
deregulated environment."
Those, Crowell said, include ef-
forts to enhance energy efficien-
cy, explore cogeneration pros-
pects, use new technologies and
buy power elsewhere.

Crowell said public comment
still would be sought on the 2020
plan. He said, "I hope there will
be a lively discussion," after
which TVA's board "will select
options that allow TVA to ...
meet future customer needs, keep
rates low, protect the environ-
ment, control debt, encourage
economic development and en-
sure a reliable supply of power."

Crowell's presentation didn't
play well to all. Dr. Stephen
Smith, executive director of the
Tennessee Valley Energy Reform
Coalition, was disappointed by
the proposal's "ambitious load
forecast" and lesser emphasis on
aggressive conservation measures
like added home insulation and
improved heating efficiency.

"TVA's commitment to energy
efficiency in the plan is weak,"
said Smith, whose coalition in-
cludes 16 smaller groups. He said
his concerns were shared by envi-
ronmentalists and TVA power
distributors alike. TVA's inten-
tion of moving forward with work
on Watts Bar Unit 1 and Brown's
Ferry plants, he said, would boost
TVA debt.

"There's no way to complete
those and stay below TVA's debt
ceiling," Smith said. He added
that TVA "jumped the gun" on
his fellow members of the IRP
Review Group by publishing the
draft the same day it was sent to
panel members.

Crowell, however, said TVA
would conduct more public meet-
ings seeking response to the pro-
posals before a July draft of the
plan is released. TVA will publish
a final plan by year's end, he said.