Dow Jones report on TVA bond sale

Keep an eye on this federal agency that won’t stop spending borrowed money it cannot in any reasonable scenario pay back.

TVA artificially warps the economic culture of a whole 80,000 sq. mi. swath in the Southeast and uses every way possible to extort money from its ratepayers. Its latest ploy, which I believe is illegal, is to charge their some 9 million customers an “average” of 69 cents a month to pay for, now get this, their own billion dollar act of negligence.

The Kingston disaster billed as one of the worst environmental disasters in US history clearly could have been prevented by the TVA itself after numerous warnings.

The credibility of rating agencies is stretched beyond limits when they give TVA financing a triple A rating just because the federal government wouldn’t dare let the TVA go under. That stated belief is not supported by a single fact. And in fact, the government explicitly states that TVA bonds are not guaranteed.

TVA not only is anti-free market, it also hurts the financing capabilities of investor owned utilities none of which are rated AAA.

TVA has broken promise after promise to reduce its debt and now seeks even more debt. This is not the American way (but maybe it is).

I have written much about the TVA; see Norsworthy Opinion at and my latest, “Are TVA reports to SEC useless?”

Ernest Norsworthy

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