Concept of Dissolving TVA
December 7, 2015
Since TVA tries to be like a private utility, why not turn everything over to them and completely remove themselves from the federal government? TVA could change its name to “Tennessee Valley Energy” (TVE,) wholly owned by shareholders and in no way connected to the federal government. If this sounds shocking, well, it is as revolutionary as was the TVA Act of 1933.
This means striking down the TVA Act completely; as if it never existed. Now the conversion of TVA is another matter. Can TVA be eliminated in one fell swoop? A clean and massive break probably is the best. First, TVA has to be restructured into a private, shareholding entity. A CEO and board of directors must be established to clearly identify TVA as no longer part of the federal government.
All of the land and properties owned by the government controlled TVA will be transferred to the company called “Tennessee Valley Energy” or some such other name, a private company. When that occurs and when the new company is duly formed, the new company must be recognized as a legitimate utility by each of the seven state Public Service Commissions who approve rate changes proposed by the electric utility serving the state.
Those appointed or elected separately in each of TVA’s seven states will assume the regulatory role of electric utilities, not by the federal government. If one or more states in the seven-state TVA territory have not organized with some kind of public service commission then that state’s official governing body must recognize the new company as a legitimate utility doing business in that state.
State laws authorizing TVA will henceforth become moot and inapplicable. The proceeds from the “payments in lieu of taxes” will cease unless the new company wishes to continue them, which is unlikely since the company will be required to pay state and local taxes.
This is Part 1 of a series on the privatizing of the present TVA. Note that the administration said that when an agency like TVA loses its usefulness, it should be eliminated. This proposed method of TVA’s dissolution is one of many alternatives to accomplish this; however, a quick, clean break from the federal government would seem to accomplish the administration’s goal.
Your comments or suggestions are welcomed.