Knoxville big looser if TVA leaves

Knoxville big loser if TVA leaves

June 13, 2014

So, the unrevealed writers of the Knoxville News Sentinel editorial board believe that the million dollars paid by TVA for the financial justification of the continuance of TVA “should be enough to convince the Obama administration to scuttle the idea.” There is no proof that the ad hoc conclusions of Lazard Frères were not previously known or reasonably expected, but the suspicion is there.

Knoxville, headquarters for TVA, stands to lose many federal jobs in the latest iteration of TVA’s fits and starts. To suggest that private investors would have run the 80 year old anachronism the way TVA has been run, is absurd.

Also, the Lazard survey concentrated on the fiscal aspects of TVA comparing it mostly with investor-owned utilities and not fully recognizing the comparisons between oranges and apples is not valid. A federal agency, particularly TVA for its place in the government hierarchy, has often been compared to private industry, a non sequitur. And nowhere did it mention anything about TVA’s now recognized constitutional question.

It’s at where you’ll see a thorough debunking of the Lazard study. And by no less than a former executive with the OMB. For the past two years, OMB has suggested TVA’s assets should be sold; that TVA has outlived its “usefulness.”  

But behind Obama’s desire to kill TVA is really his pledge to kill the coal industry. With TVA out of the way, he can fully let loose the EPA to do their dirty work in the whole country. The sudden cessation of the use of coal would, probably, near term, devastate the U. S. Economy; all in the name of “global warming.”

Maybe the people in the Shoals area of north Alabama feel a little revenged since the headquarters for TVA was (and is) the location prescribed in the TVA Act of 1933.

“How clean was my Valley” TVA and pollution

The Decatur Daily (Alabama) recently wrote admiringly about TVA’s quiet “clean air” progress; still in Utopialand.

TVA is not so quietly, but desperately trying to cling to the status quo in the face of two consecutive years of Obama’s suggestion that TVA might have outlasted its usefulness. Still, the actual reason is TVA’s overwhelming debt overhang which is about to exceed Congress’s $30 billion debt cap; this counts against the federal budget shortfall. That’s the real reason for the “outlived its usefulness” remark by OMB, which is, of course, also true.

TVA will spare no avenue to seek support to help save the 80 year old federal monolith. For example, TVA contracted (thanks to TVA ratepayers) with a financial market specialist, Lazard Frères, for a million dollar study, which, wonder of wonders, recommends keeping TVA. But their data do not necessarily bear out their ad hoc conclusions.

Is TVA air cleaner than, say, South Carolina air? (Or Lower Alabama air?) TVA can’t prove that it is or is not; they can only brag about TVA accomplishments. Ah, how clean was my Valley.

Why is TVA, a federal agency, doing such a “good job” of providing cleaner air? Well, it’s more often than not at the behest of the all-powerful EPA, which is likewise a higher ranked federal agency. If not throttled by Congress, EPA promises to control even the air we exhale and every drop of water that exists.

No, it’s a little different down here below in Utopialand where jobs do not magically come down as manna from heaven, but from man’s own hard work.

  Isn’t it time to be released from the spell TVA has cast on too many in the South? And let the innate instincts of entrepreneurship take over? For good reasons to abolish TVA, see the references below.

Ref: and