Electric Energy Options for the Tennessee Valley Authority

A GAO review of the Tennessee Valley Authority (TVA) showed a need for different programs and priorities if TVA is to reflect national energy goals and to continue its role as a national energy gauge. Congress authorized TVA to incur a total indebtedness of up to $15 billion to finance its power program. As of September 30, 1978, TVA had a $7.2 billion indebtedness outstanding and projected an outstanding level of $9.1 billion by September 30, 1979. TVA based its future planning on a July 1977 single load forecast that projected an average annual electricity growth rate of 4.5 percent for a 15-year period. GAO developed two alternative projections that evaluate the effects of various conservation programs, resulting in a high electricity growth rate projection of 4 percent and a low projection of 2.7 percent. By using various demand options, TVA could reduce the growth rate of energy demand, make the existing power system more efficient, and defer new generating systems. GAO analysis showed that the completion of plants now in progress or licensed could, when coupled with consumption efficiency, meet demand through the early 1990's. At a minimum, TVA will need an increase in its borrowing authority to about $20 billion just to finish nuclear powerplants now under construction.