The Tennessee Valley Authority’s stewardship mission was the main theme of today’s TVA Board of Directors meeting in Paris Landing State Park, Tenn.
“TVA’s mission is to help improve the quality of life for the people of the Tennessee Valley,” said TVA President and CEO Bill Johnson. “We do that by being fiscally responsible and providing low cost electricity, environmental stewardship and economic development.”
Chief Financial Officer John Thomas reported that TVA has maintained healthy financials despite lower revenues. “So far this year, consumers are benefiting from mild weather and much lower costs for fuel and purchased power,” he said. “We are maintaining good discipline in managing our costs, even with lower sales, and focusing on the bottom line to keep our rates low.” For more complete financial information go to: www.tva.com/investors.
TVA is cutting its monthly fuel cost adjustment in May to the lowest level in six years. The overall system average fuel rate is approximately 34 percent lower than the thee-year average. The lower cost is driven by recent mild weather and lower natural gas prices.
Strong financial management also includes evaluating asset needs today and in the future and making the decisions necessary to adjust for continued flat demand in electricity. At the meeting, the board voted to surplus the Bellefonte Nuclear Plant property in northern Alabama so it can be offered for sale and potentially put to better use. TVA has been preserving the property as an option for future nuclear generation. TVA’s Integrated Resource Plan shows that large-scale power generation sources will not be needed for at least 20 years.
“We sought public comments on whether to sell or keep the property and for what uses,” Mr. Johnson said. “Our analysis of the property and its potential uses, and input from public officials, customers and Valley residents, indicate that offering the property for sale could better serve the public.” With the board’s vote, TVA will now begin the process of getting the property ready for auction.
TVA serves as steward of the region’s natural resources and manages 293,000 acres of land and 11,000 miles of shoreline. “The work of TVA employees in resource management makes a difference, and it’s rewarding for employees and for the public,” Johnson said. Since 2015, TVA employees have partnered with more than 460 groups to conduct activities on 41 reservoirs upgrading public recreation sites, enhancing habitat areas, protecting archaeological and historical sites, and conducting educational outreach efforts on the importance of protecting our natural resources.
“Our work as stewards of the region’s natural resources requires us to deal with the challenging issue of how to manage the Tennessee River system and other resources to provide the greatest good for the public and for all the people we serve,” Mr. Johnson said. “That question was at the heart of the study we conducted for more than two years, gathering input from owners, the public, other lake users, environmentalists, community leaders and public officials, among others, on how to address privately owned, non-navigable floating houses on TVA reservoirs.”
There are approximately 1,800 of the non-navigable structures on TVA reservoirs. More than 50 percent of these do not have permits and do not meet the minimum safety and environmental standards.
The board approved a new policy on floating houses that does not allow any new floating houses on TVA reservoirs and all floating houses must be removed within 30 years. In addition, the existing floating houses must be permitted and meet safety and environmental standards.
“These structures amount to a commercial development of private communities on public waters,” Mr. Johnson said. “Like national and state parks, which prohibit private residential use of public resources, the land and water we manage are owned by the public. We have taken care to consider all perspectives on this issue, as well as the environmental and safety impacts, and believe this is the correct course of action for everyone.”
During the board’s External Relations Committee report, members received an update on TVA’s economic development activities. So far this year, TVA has helped attract or retain 50,000 jobs and $6.1 billion in business investments in the Valley. Mr. Johnson told the board that TVA works with customers, public officials and economic development agencies to attract good jobs to the region and retain them, help existing businesses and industries thrive, and to help Valley communities prepare for growth.
In other business, the board approved:
- A fleet-wide non-nuclear maintenance and modifications contract with G•UB•MK
- Three long-term service agreement contracts with General Electric International Inc., the original equipment manufacturer, for TVA’s Caledonia, Magnolia and Southaven Combined Cycle Sites
- Delegation of authority to management to execute large generator interconnection agreements