Analysis of the Feasibility of TVA Power Being Available Through Power Exchange Arrangement to General Public Utilities

EMD-82-129: Published: Sep 30, 1982. Publicly Released: Nov 1, 1982.

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Pursuant to a congressional request, GAO reviewed the feasibility of a sale of excess Tennessee Valley Authority (TVA) power to General Public Utilities (GPU) and any problems that might be involved.

GAO found that any arrangement involving TVA power that would benefit GPU is unlikely at this time. Economics is the primary reason such arrangements have not occurred and probably will not occur unless TVA makes power available at prices lower than those that have been previously discussed with GPU. Even if the TVA power was economically competitive, there are some technical, legal, and institutional constraints which would be involved. For example the Tennessee Valley Authority Act of 1933 precludes a sale of power from TVA to GPU. TVA would have to sell power to systems with whom they had exchange arrangements; in turn, these systems could make power available to GPU.

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