TVA`s debt limit

Journal Article · Wed Mar 01 04:00:00 EST 1995 · Fortnightly

OSTI ID:146065

Pulsipher, A G ^[1]

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1. Louisiana State Univ., Baton Rouge, LA (United States)

This article is review of the debt (and debt limit) of the Tennessee Valley Authority. The history of TVA financing practices is discussed as is public policy associated with the Congressionally imposed debt ceiling of $30B. Reasons for TVA`s massive debt, which is approaching the ceiling, are also reviewed, with the emphasis on the $15B investment in cold or incomplete nuclear plants. TVA has recently announced that it would not finish three of these nuclear units without a venture-capital partner, and it has also announced that it would set an internal cap on total debt at some $2B to $3B below the legal limit. This self-imposed limit has influenced TVA`s own future plans for additional generating capacity as outlined in their Energy Vision 2020 Report. In that report, TVA has made an effort to supply the energy needs of the region over the next 25 years without the massive capital expenditures associated construction of large base-loaded power stations. The present article concludes that the imposed debt ceiling has failed to provide effective external control and accountability, and as a result, an amendment to the TVA act is proposed to provide an enlarged TVA Board that is clearly separated from managerial decisions. The present article also concludes that the debt ceiling should be removed.

• OSTI ID: 146065
• Journal Information: Fortnightly, Journal Name: Fortnightly Journal Issue: 5 Vol. 133; ISSN FRTNE8
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
CANCELLATION
FINANCIAL DATA
FINANCING
NUCLEAR POWER PLANTS
TENNESSEE VALLEY AUTHORITY