TVA to meet with Obama soon
April 27, 2013
It is not coincidental that Reuters has stolen a march on TVA media about a meeting soon with the Obama administration. TVA has been jealously guarded and hardly ever is criticized by the local media. CEO Bill Johnson is extremely worried about his job saying, “We want to hold these meetings as quickly as possible to avoid periods of uncertainty,” quoting the Reuters article.
And that goes for the some 13,000 federal employees who are faced with probable dislocation from their over-priced positions. But TVA carries a lot of baggage from 80 years of pretending it was a regular private-enterprise utility. TVA has confused other federal agencies and in effect, declared itself different, and that it should be handled differently.
Millions have been spent by TVA defending itself from every imagined lawsuit; TVA has appealed every decision held against them when common sense said many of them should have been settled. There is no “bottom line” for TVA and it competes with private industry at every move.
Beside artificially warping the economy of the South, it patronizes with its largess in many ways. It just never should have become an operational electricity supplier; it has tried to become a separate entity from the federal government with a set of rules of its own.
Appealing to the citizens in the TVA territory for decades with its promise of “cheap” electricity, which is no longer true despite its federal advantages, it nonetheless has maintained the myth of cheapness. Many have hardened their belief it is so.
The burden of TVA’s unbridled spending is on the ratepayers, not the taxpayers. And TVA spending does not go through the natural business filters to determine its economic value typically given to users and stockholders.
Bill Johnson was right about one thing, there is no way to determine TVA’s market value when TVA has never been valued in the market.