TVA Nuclear Power:
Information on Certain Aspects of TVA's Nuclear Power Program
RCED-86-72FS, Jan 8, 1986
In response to a congressional request, GAO obtained information on the operations of the Tennessee Valley Authority (TVA), focusing on the: (1) effect on TVA ratepayers of its decision to temporarily shut down its operating nuclear units and to slow construction on its remaining units; (2) long-term electric power rate increases TVA projected over the next 10 years; and (3) steps TVA is taking to repay its outstanding debt to the Federal Financing Bank.
GAO found that TVA: (1) operating costs for fiscal years 1985 and 1986 increased by a total of $108 million as a result of its decision to shut down five operating nuclear units in 1985; (2) included only $40.5 million as a revenue requirement in establishing 1986 power rates for its customers; (3) plans to retire $4.56 billion of its $15.6-billion outstanding long-term debt that is associated with the construction of eight cancelled nuclear units; and (4) will probably refinance the balance of its long-term debt as notes become due.