TVA Power Demand 1-1-14

It is all about “demand,” which means demand for electricity and the article by Ed Marcum of the Knoxville Sentinel tries to lessen the blow of declining sales, the bugaboo of all industrial manufacturing. The only thing is that TVA is no ordinary company whose fate rests on sales of its product. If only TVA could see the stark reality of what would be done under ordinary industrial manufacturing circumstances instead of whimpering to (sob, sob) mother Washington, then TVA would be among the largest manufacturers in America and prepared to take its lumps.

 But TVA has such a colossal fixed cost it never could buy or produce its way out to a reasonable breakeven point, much less to profitability. Look way back some 80 years ago when the strange TVA was formed with the soul of southern states hanging in the balance. That balance leans more than ever to a leftward socialistic society.  

 But the writers of that legislation new what they were doing with enticements of jobs and the wily payments in lieu of taxes gambit. Soon, almost the complete state of Tennessee was brought under the spell of federal money. Other states became pawns in the game of federal government control and their politicians promising more jobs and money.

 The principle of a separation of powers was blown to bits with the enactment of the TVA Act of 1933. TVA was recognized decades ago as an anomaly of the Constitution (which was never ruled on by the Supreme Court as to TVA’s constitutionality) but the leaders then, while acknowledging the breakdown, saw weak politicians (among some now,) rejecting the idea of our entrepreneurial system of government, at least in TVA’s case.

 The continual declining of electricity sales (since 2007?) for TVA means the colossal collapse of the faulty framework of the TVA. There’s no place for TVA to go but to go begging because of its legal makeup.