TVA criticized for ending valleywide rate meetings

TVA criticized for ending
valleywide rate meetings
by LAURA SIMMONS
News-Sentinel staff writer

TVA ratepayers this year will have fewer chances to voice their opinions about a proposed 8 percent rate hike since the board and general manager have decided to drop a tradition of holding public rate meetings across the valley.

However, ratepayers can still comment on the proposal by calling TVA's Citizen Action Line, writing letters or attending an Aug. 17 public rate hearing in Knoxville, agency officials said.

Meanwhile, U.S. District Court Judge Thomas Hull will begin hearings Monday in a lawsuit filed by TVA against the Department of Energy for its decision to withhold millions of dollars in payments to the utility.

TVA officials say if they win the legal battle the recovered revenues should result in a 6 percent rate reduction in fiscal year 1988, which begin Oct. 1.

Under the proposed rate increase, residential rates would rise 7.9 percent, with the average monthly bill for 1,000 kilowatthours of power increasing from $55.10 to $59.45.

If TVA recovers the DOE revenues, the residential bill for 1,000 kilowatthours would increase by 99 cents.

Small commercial and industrial rates will go up 6.6 percent if DOE does not pay its bill and 1.5 percent if the bill is paid in full, agency officials said.

Rosemary Hansen, president of the Tennessee League of Women Voters, which has worked closely over the years with TVA in trying to increase citizen participation, said the league is disappointed in the decision to end the valleywide meetings.

Charlie Blair, spokesman for the Tennessee Valley Energy Coalition, a ratepayer's group, blasted the move as "one more block in the wall of TVA's perceived siege mentality."

Citizens in the valley need an opportunity to address the TVA board directly and traveling to the Knoxville hearing will be impossible for many.

However, TVA Chairman Charles Dean said TVA decided not to hold the valleywide meetings because they have been poorly attended.

He angrily defended the board's record of meeting directly with citizens, saying two directors spend much of their time on the road meeting the public year-around. In addition, ratepayers can talk directly with board members several times a year on the Citizen Action Line.

"You can't conceive of a board of any public corporation that is more easily reached than this board, and I'm proud of that," Dean said.

Last year, TVA held seven rate meetings across the valley with attendance ranging from 14 in Tupelo, Miss., to 100 in Knoxville. During the seven meetings, a total of 44 people made formal comments, TVA information director Alan Carmichael said.

TVA will hold the public rate hearing at 6:30 p.m. Aug. 17 in the West Tower Auditorium. In addition, ratepayers can send written comments to Alan Carmichael, Director of Information, 400 West Summit Hill Drive, Knoxville, Tenn. 37902.

Groups or individuals wishing to comment at the public session should make a request in writing to Carmichael. Oral presentations will be limited to 10 minutes to allow everyone a chance to speak, agency officials said.

For further information, contact the Citizen Action line at 1-8362-9520 for Tennessee residents, 632-4100 for Knoxville residents and 1-800-251-9242 for residents outside Tennessee.

DOE's role in TVA rates called outrage

WASHINGTON - Sen. Albert Gore Jr., D-Tenn., said it was "an outrage" that TVA ratepayers will face a 6 percent increase if the Department of Energy does not resume paying its full demand charge to TVA.

TVA announced Friday that rates would have to rise 8 percent - with 6 percent of that caused by DOE's refusal to meet a contractual obligation regarding its power needs.

"It is an outrage and an embarrassment to have a federal agency in effect extorting payments from electric customers who already pay the government's bills with their taxes," Gore said.

He said he hoped the courts would act on TVA's lawsuit against DOE before Oct. 1 "and force DOE to abide by its contract and pay its bills."