Concept of Privatizationof TVA – Part 2

Concept of privatization of TVA – Part 2

December 12, 2015

 

Of the many changes from the old TVA to a private company, we must start with a solid base, hence a legal foundation in each state. In setting up the new corporation, governors of the seven states must appoint a representative that is authorized to act in the governors’ name in establishing the new private electric utility in their state.

Step 1 – A single representative from each of the seven states appointed by governor;

Step 2 – Temporary commission of seven members to serve until the new corporation is formed. Roberts Rules of Order shall be used in all official meetings. Board Members and the CEO will be named by this commission.

Step 3 – State laws pertaining to TVA, a federal agency, shall be considered moot and non-operative.

Step 4 – Tax-setting authorities in each state will determine the rates for the new corporation by determining amounts of power sold to the group of 155 utilities and for those directly served by the former TVA. Over all, the combination of taxes to the states and local governments should far exceed the present payment of 5% presently charged as payments-in-lieu-of taxes particularly since the 5% excludes so many items chosen by TVA. The amount of the PLOT to each state and locality is based on how much electricity is used; a particularly unfair distribution of PLOT.

Step 6 – Restructure the new corporation to fit into a profit-making mode, including reviews of every operation of the old TVA to determine if it costs more than it is worth. It is expected that the new electric utility will shed many operations that are eleemosynary in nature or functions that do not relate to the production and sale of electricity.

More to follow in the proposed dissolution of TVA…

Norsworthy Opinion

emnorsworthy@earthlink.net

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