Now comes TVA’s explanation of the $822 million payback
March 1, 2011
“With the change to the monthly FCA formula on October 1, 2009, the remaining balance in the existing deferred liability account balance at that date from the quarterly FCA formula of approximately $822 million is being liquidated over a nine-month period from October 1, 2009 through June 30, 2010.” (SEC Report February 3, 2010)
In case you’re having a little trouble in understanding TVA-doublespeak, I’ll try to help some.
What TVA calls a “deferred liability account” is the account where the TVA has held the illegally collected “fuel cost adjustment” of $822 million. That “overcollected” amount was repaid (“liquidated” according to TVA) over nine months to appear that there was an actual rate decrease when it was a repayment of the absconded $822 million.
To add insult to injury, TVA said it had to “replenish” that $822 million somehow to replace the “stolen” funds! It’s all quite arcane and I’m probably leaving out a wrinkle or two. If TVA would show their actual budget line by line and how much has been spent it would be much easier to follow the money trail.
TVA says, “Deferred liability liquidation”, I say fraud.