GAO finds problems with TVA’s spending plan
Published: December 9,2011
NORTH MISSISSIPPI — A U.S. Government Accountability Office report says the Tennessee Valley Authority’s plans for spending on power-generating facilities and its agreement to spend up to $5 billion on pollution controls pose difficult financial decisions.
The report also says TVA has been slow to consider the potential of energy efficiency measures but acknowledges the utility is about to finish such a study.
With TVA’s statutory debt at almost $24 billion in September 2010, the report says TVA plans to spend about $10 billion by 2013 for capital projects.
TVA President and CEO Tom Kilgore in a written response also released Dec. 1 said TVA “sees the opportunity for considerable progress in energy efficiency.” Kilgore said TVA needs financial flexibility and he reminded the GAO that the debt ceiling remains unchanged since 1979.
To sign up for Mississippi Business Daily Updates, click here.