- Tennessee Valley Authority
Infobox_Company
company_name = Tennessee Valley Authority
company_
company_type = Government-owned independent corporation
company_slogan =
foundation =1933
founder =
location =Knoxville, Tennessee ,USA
key_people =Tom Kilgore (current CEO)
industry =electric utility
revenue = profit$9.1 billion USD (FY 2006 ending September 30, 2006)
operating_income = profit$1.6 billion USD (FY 2006)
net_income = profit$325 million USD (FY 2006)
homepage = [http://www.tva.gov/ www.tva.gov] The Tennessee Valley Authority (TVA) is a federally ownedcorporation in theUnited States created by congressional charter inMay 1933 to providenavigation , flood control,electricity generation ,fertilizer manufacturing, andeconomic development in theTennessee Valley , a region particularly impacted by theGreat Depression . The TVA was envisioned not only as an electricity provider, but also as a regional economic development agency that would use federal experts and electricity to rapidly modernize the region's economy and society.The TVA's
jurisdiction covers most ofTennessee , parts ofAlabama ,Mississippi , andKentucky , and small slices of Georgia,North Carolina , andVirginia . It is a political entity with a territory the size of a major state, and with some state powers (such aseminent domain ), but unlike a state, it has nocitizenry or elected officials. It was the first large regional planning agency of the federal government and remains the largest. Under the leadership ofDavid Lilienthal ("Mr. TVA"), the Authority became a model for American efforts to modernizeThird World agrarian societies.David Ekbladh, "Mr. TVA": Grass-Roots Development, David Lilienthal, and the Rise and Fall of the Tennessee Valley Authority as a Symbol for U.S. Overseas Development, 1933–1973" "Diplomatic History" Summer 2002 Vol. 26 Issue 3 pp 335-374 ]Overview
President
Franklin Delano Roosevelt signed the Tennessee Valley Authority Act (ch. 32, USStat|48|58, "codified as amended at USC|16|831, et seq."), creating the TVA onMay 18 ,1933 .As a supplier of electric power, the agency was given authority to enter into long term (20 years) contracts for the sale of power to government agencies and private entities, to construct
electric power transmission lines to areas not otherwise supplied and to establish rules and regulations forelectricity retailing and distribution. The TVA is thus both a power supplier and aregulator .Today the TVA is the nation's largest public power company, providing electric power to nearly 8.5 million customers in the Tennessee Valley. It acts primarily as an electric power
wholesaler , selling to 158 retail power distributors and 61 directly served industrial or government customers. Power comes fromdams providinghydroelectric power ,fossil fuel plants,nuclear power plants,combustion turbines andwind turbines .During the
1920s and theGreat Depression years, Americans began to support the idea of public ownership of utilities, particularly hydroelectric power facilities. The concept of government-owned generation facilities selling to publicly owned distribution utilities was controversial and remains so today. [Hubbard, pp 5-27]Many believed privately owned power companies were charging too much for power, did not employ fair operating practices and were subject to abuse by their owners (utility holding companies), at the expense of consumers. During his presidential campaign, Roosevelt claimed that private utilities had "selfish purposes" and said, "Never shall the federal government part with its sovereignty or with its control of its power resources while I'm president of the United States." By forming utility holding companies, the private sector controlled 94 percent of generation by 1921, essentially unregulated. (This gave rise to
Public Utility Holding Company Act of 1935 (PUHCA)). Many private companies in the Tennessee Valley were bought by the federal government. Others shut down, unable to compete with the TVA. Government regulations were also passed to prevent competition with the TVA.On the other hand, there were economic
libertarians who believed the government should not participate in the electricity generation business, fearing government ownership would lead to the misuse of hydroelectric sites. The TVA was one of the first federalhydropower agencies, and today most of the nation's major hydropower systems are federally managed. Other attempts to create TVA-like regional agencies have failed, such as a proposed Columbia Valley Authority for theColumbia River .Regional power consumers may benefit from lower-cost electricity supplied from TVA's network of 29 power-producing hydropower facilities. Supporters of the TVA, though, note that the agency's management of the Tennessee River system without appropriated federal funding saves federal taxpayers millions of dollars annually. Opponents, such as Dean Russell in "The TVA Idea," in addition to condemning the project as being
socialist , argued that the TVA created a "hidden loss" by preventing the creation of "factories and jobs that would have come into existence if the government had allowed the taxpayers to spend their money as they wished." Defenders note that the TVA is overwhelmingly popular in Tennessee among conservatives and liberals alike, asBarry Goldwater discovered in 1964, when he proposed selling the agency. [Rick Perlstein, "Before the Storm: Barry Goldwater and the Unmaking of the American Consensus" (2001) p. 226]One study says that public utilities are inadequate on maintenance. They note that federally owned power systems spend significantly less than private systems on this. They report that the TVA "spends only five percent of its revenues on maintenance." And, they say that as a consequence, ability to produce power suffers. Privately owned dams produce 20 percent more electricity than federally owned dams. They also report that the TVA charges its preferred customers (publicly owned utilities and cooperatives) more than private utilities charge the same class of customers. Also, they note when the public purchases bond issues from the TVA, they do not have an eye on the viability of the project but are, rather, basing their investment decision on the fact that repayment is guaranteed via taxation. (CBO, "Should the Federal Government Sell Electricity")
The Supreme Court of the United States ruled the TVA to be constitutional inAshwander v. TVA , 297 U.S. 288 (1936). The Court noted that regulating commerce among the states includes regulation of streams and that controlling floods is required for keeping streams navigable. The war powers also authorized the project. The argument before the court was that electricity generation was a "by-product" of navigation and flood control and therefore could be considered constitutional.History
Much of this information comes from http://www.tva.gov/abouttva/history.htm, a government website and thus in the
public domain .1930s
Even by Depression standards, the Tennessee Valley was in sad shape in
1933 . Thirty percent of the population were affected bymalaria , and the income was only $639 per year, with some families surviving on as little as $100 per year.Fact|date=April 2007 Much of the land had been farmed too hard for too long, eroding and depleting the soil.Crop yield s had fallen along with farm incomes. The besttimber had been cut, with another 10% of forests being burnt each year.Fact|date=April 2007The TVA was designed to modernize the region, using experts and electricity to combat human and economic problems. [ Bruce J. Schulman, "Policy, Economic Development, and the Transformation of the South, 1938-1980," 1991 p. 183 ff; ] TVA developed
fertilizer s, taught farmers ways to improve crop yields and helped replant forests, controlforest fires , and improve habitat for fish and wildlife. The most dramatic change in Valley life came from TVA-generated electricity.Electric light s and modernappliances made life easier and farms more productive. Electricity also drew industries into the region, providing desperately needed jobs.Fact|date=April 2007None of this was easy. The development of the dams displaced more than 15,000 families. This caused resentment and anti-TVA sentiment in some rural communities.Fact|date=April 2007 Many local landowners were suspicious of government agencies. But the TVA successfully introduced new agricultural methods into traditional farming communities by blending in and finding local champions.
A Tennessee farmer would not take advice from an official in a suit and tie, so TVA officials had to find leaders in the communities and convince them that
crop rotation and the judicious application of fertilizers could restore soil fertility. Once they had convinced the leaders, the rest followed.Beginning with its inception, the TVA was based in
Knoxville, Tennessee in the old Federal Customs House at the corner of Clinch Avenue and Market Street. The building is now a museum. [ [http://www.east-tennessee-history.org East Tennessee Historical Society:ETHS home ] ]Employment policy
The unemployed were hired for conservation,
economic development , andsocial program s such as alibrary service that operated for the surrounding area. The professional staff headquarters was composed of experts from outside the region. The workers were categorized into the usual racial and gender lines of the day. The TVA hired a fewAfrican-Americans for janitorial positions. The TVA recognizedlabor unions ; its skilled and semi-skilledblue collar employees were unionized, a breakthrough in an area known for corporations hostile to miners' unions and textile unions. Women were excluded from construction work, although the TVA's cheap electricity attractedtextile mills that hired mostly women. [Jennifer Long; "Government Job Creation Programs-Lessons from the 1930s and 1940s" "Journal of Economic Issues". Volume: 33. Issue: 4. 1999. pp 903+ on TVA in Knoxville]1940s
During
World War II , the U.S. neededaluminum to build airplanes. Aluminum plants required huge amounts of electricity, and to provide the power, the TVA engaged in one of the largest hydropower construction programs ever undertaken in the U.S. Early in 1942, when the effort reached its peak, 12 hydroelectric plants and one steam plant were under construction at the same time, and design and construction employment reached a total of 28,000. The largest project of this period was theFontana Dam Project. After negotiations led byHarry Truman ("I want aluminum. I don't care if I get it from Alcoa or Al Capone."), TVA purchased the land from Nantahala Power and Light, a wholly-owned subsidiary of Alcoa, and built Fontana Dam.Electricity from Fontana was intended for Alcoa factories. By the time the dam generated power in early 1945, the electricity was used for another purpose in addition to aluminum manufacturing. TVA also provided much of the electricity needed for
uranium enrichment atOak Ridge, Tennessee , as required for theManhattan Project .1950s
By the end of the war, TVA had completed a 650-mile (1,050-kilometer) navigation channel the length of the Tennessee River and had become the nation's largest electricity supplier. Even so, the demand for electricity was outstripping TVA's capacity to produce power from hydroelectric dams. Political interference kept TVA from securing additional federal appropriations to build coal-fired plants, so it sought the authority to issue bonds. Congress passed legislation in 1959 to make the TVA power system self-financing, and from that point on it would pay its own way.
1960s
The 1960s were years of unprecedented economic growth in the Tennessee Valley. Electric rates were among the nation's lowest and stayed low as TVA brought larger, more efficient generating units into service. Expecting the Valley's electric power needs to continue to grow, TVA began building
nuclear reactor s as a new source of cheap power. During this decade (and the 1970s), TVA was engaged in what was up to that time its most controversial project - theTellico Dam Project. The project was initially conceived in the 1940s but not completed until 1979.1970s and 1980s
Significant changes occurred in the economy of the Tennessee Valley and the nation, prompted by an international oil embargo in
1973 and accelerating fuel costs later in the decade. The average cost of electricity in the Tennessee Valley increased fivefold from the early 1970s to the early1980s . With energy demand droppingFact|date=September 2007 and construction costs rising, TVA canceled several nuclear plants, as did other utilities around the nation.Marvin T. Runyon became chairman of the Tennessee Valley Authority in January1988 . He claimed to reduce management layers, cut overhead costs by more than 30%, achieve cumulative savings and efficiency improvements of $1.8 billion. He said he revitalized the nuclear program, and instituted a rate freeze that continued for ten years.The
1970s saw the last and most controversial of the TVA's large dam-reservoir projects,Tellico Dam .1990s
As the electric-utility industry moved toward restructuring and
deregulation , TVA began preparing for competition. It cut operating costs by nearly $800 million a year, reduced its workforce by more than half, increased the generating capacity of its plants, stopped building nuclear plants, and developed a plan to meet the energy needs of the Tennessee Valley through to the year2020 .In the 2000s
TVA has recently made news by again reducing its workforce and by beginning new campaigns to improve its public image. It has also received acclaim from pro-nuclear organizationsFact|date=August 2008 for its work to restart a previously mothballed
nuclear reactor at Browns Ferry Unit 1 (since completed). In 2005 the TVA announced its intention to construct anAdvanced Pressurized Water Reactor at its Bellefonte site in Alabama (filing the necessary applications in November 2007), and in 2007 announced plans to complete the unfinished Unit 2 at Watts Bar. (TVA is the owner and operator of the Browns Ferry, Sequoyah and Watts Barnuclear power plants .)In 2004, TVA implemented recommendations from the Reservoir Operations Study (ROS) in how it operates the Tennessee River system (the nation's fifth largest).
TVA facilities
TVA's power mix as of 2004 was 11 fossil-powered plants, 29 hydroelectric dams, three nuclear power plants (with five reactors and one restarting), and six combustion turbine plants.TVA is one of the largest producers of electricity in the United States and acts as a regional grid reliability coordinator. Fossil fuel plants produced 62% of TVA’s total generation in fiscal year
2005 , nuclear power 28%, and hydropower 10%. [ [http://www.tva.gov/power/powerfacts.htm#irm TVA: TVA Power Facts ] ] TVA's Watts Bar reactor producestritium as a byproduct for the U.S.National Nuclear Security Administration , which requires tritium fornuclear weapons .Dams and hydroelectric facilities
*
Apalachia Dam
*Bear Creek Dam
*Beaver Creek Dam
*Beech Dam
*Blue Ridge Dam
*Boone Dam
*Cedar Dam
*Cedar Creek Dam
*Chatuge Dam
*Cherokee Dam
*Chickamauga Dam
*Clear Creek Dam
*Dogwood Dam
*Douglas Dam
*Fontana Dam
*Fort Loudoun Dam
*Fort Patrick Henry Dam
*Great Falls Dam
*Guntersville Dam
*Hales Bar Dam (demolished)
*Hiwassee Dam
*Kentucky Dam
*Little Bear Creek Dam
*Lost Creek Dam
*Melton Hill Dam
*Nickajack Dam
*Nolichucky Dam
*Normandy Dam
*Norris Dam
*Notely Dam
*Ocoee Dams 1,2,3
*Pickwick Landing Dam
*Pine Oak Dam
*Pine Dam
*Raccoon Mountain Pumped-Storage Plant
*Redbud Dam
*South Holston Dam
*Sycamore Dam
*Tellico Dam
*Tims Ford Dam
*Upper Bear Creek Dam
*Watauga Dam
*Watts Bar Dam
*Wheeler Dam
*Wilber Dam
*Wilson Dam Fossil fuel plants
*Allen
*Bull Run
*Caledonia CT
*Colbert
*Cumberland
*Gallatin
*Gleason CT
*John Sevier
*Johnsonville
*Kemper
*Kingston
*Lagoon Creek
*Marshall CT
*Paradise
*Shawnee
*Widow's CreekNuclear power plants
TVA embarked on a very ambitious program of reactor construction in the 1970s. Currently, operational TVA nuclear power plants include Browns Ferry, Sequoyah and Watts Bar.
There were several plants that were planned or in various stages of construction before they were halted and eventually canceled. Canceled nuclear facilities include Phipps Bend, Bellefonte, Hartsville, Yellow Creek, and the
Clinch River Breeder Reactor .Joint facilities
TVA also assists
ALCOA 'sTapoco /APGI in regulating several facilities, including Calderwood, Cheoah, Chilhowee and Santeetlah dams.Administration
TVA's current headquarters are located in downtown Knoxville, with large administrative offices in
Chattanooga andNashville , Tennessee, andMuscle Shoals , Alabama.Controversies
TVA was heralded by
New Deal ers and theNew Deal Coalition not only as a successful economic development program for a depressed area but also as a democratic nation-building effort overseas because of its allegedgrassroots inclusiveness as articulated by directorDavid Lilienthal . The TVA was controversial in the1930s . Historian Thomas McCraw concludes (1971 p 157) that Roosevelt "rescued the [power] industry from its own abuses" but "he might have done this much with a great deal less agitation and ill will." New Dealers hoped to build numerous other TVAs around the country but were defeated byWendell Willkie and theConservative coalition in Congress. The valley authority model did not replace the limited-purpose water programs of theBureau of Reclamation and theArmy Corps of Engineers . State-centered theorists hold that reformers are most likely to succeed during periods such as the New Deal era, when they are supported by a democratized polity and when they dominate Congress and the administration. However it has been shown [ O'Neill, Karen M. "Why the TVA Remains Unique: Interest Groups and the Defeat of New Deal River Planning." "Rural Sociology" 2002 67(2): 163-182. ISSN 0036-0112] that in river policy the strength of opposing interest groups also mattered. The TVA bill was passed in 1933 because reformers like Norris skillfully coordinated action at potential choke points and weakened the already disorganized opposing electric power industry lobbyists.(Hubbard1961 ) In 1936, however, after regrouping, opposing river lobbyists and conservative coalition congressmen took advantage of the New Dealers' spending mood by expanding theArmy Corps ' flood control program. They also helped defeat further valley authorities, the most promising of the New Deal water policy reforms.When Democrats after 1945 proclaimed the TVA as a model for third-world countries to follow, conservative critics charged it was a top-heavy, centralized, technocratic venture that displaced locals and did so in insensitive ways. Thus, when the program was used as the basis for modernization programs in various parts of the third world during the
Cold War , such as in theMekong Delta inVietnam , its failure brought a backlash of cynicism toward modernization programs that has persisted.Then-movie star
Ronald Reagan had moved to television as the host and a frequent performer for "General Electric Theater ". But he was fired byGeneral Electric in 1962 in response to Reagan referring to the TVA as one of the problems of "big government". [ [http://www.pbs.org/newshour/biography_pages/reagan/biography.html PBS "Newshour" Reagan biography] ] Reagan would subsequently reiterate his points at the1964 Republican National Convention , in his speech "A Time for Choosing " [ [http://www.reagan.utexas.edu/archives/reference/timechoosing.html "A Time for Choosing" (The Speech – October 27, 1964) ] ] :One such considered above criticism, sacred as motherhood, is TVA. This program started as a flood control project; the Tennessee Valley was periodically ravaged by destructive floods. The Army Engineers set out to solve this problem. They said that it was possible that once in 500 years there could be a total capacity flood that would inundate some convert|600000|acre|km2. Well, the engineers fixed that. They made a permanent lake which inundated a million acres (4,000 km²). This solved the problem of floods, but the annual interest on the TVA debt is five times as great as the annual flood damage they sought to correct.
Of course, you will point out that TVA gets electric power from the impounded waters, and this is true, but today 85 percent of TVA's electricity is generated in coal burning steam plants. Now perhaps you'll charge that I'm overlooking the navigable waterway that was created, providing cheap barge traffic, but the bulk of the freight barged on that waterway is coal being shipped to the TVA steam plants, and the cost of maintaining that channel each year would pay for shipping all of the coal by rail, and there would be money left over.
The publicity Reagan gained in part from this speech paved the way for his election as Governor of California in 1966.cite web |url=http://www.pbs.org/newshour/biography_pages/reagan/biography.html |title=Ronald Reagan |publisher=PBS |accessdate=2007-11-27 |format=HTML |work= ]
TVA in popular culture
In the 1930s, the building of
Norris Dam and the changes it brought to the region inspiredfilms ,books ,stage plays , andsongs .Folk songs from the construction period express enthusiasm for the benefits that the dam project brought to the region. [Bob Fulcher, " [http://www.state.tn.us/environment/tn_consv/archive/songs.htm The Songs of Norris Dam] ", "The Tennessee Conservationist", July 2000.]TVA continues to be a subject for popular culture:
*TheCoen Brothers ' 2000 film "O Brother, Where Art Thou? " depicts the fictional flooding of an unnamed Mississippi valley by an unspecified TVA dam project in the 1930s.
*In an episode of "The Simpsons " Young Grandpa Simpson uses "What the Tennessee Valley Authority!" as an exclamation when he sees an atom bomb dropped onJapan .
*In Alabama's "Song of the South" lyrics in one verse include "Papa got a job with the TVA".
*The Everybodyfields song "T.V.A.," from the album is about the Tennessee Valley Authority.* see also the major film, "Wild River" from 1960 about the human toll of change in this area.
See also
*
Appalachian Regional Commission
*Elizabethton, Tennessee
*New Deal
*Norris, Tennessee
*Tennessee Valley Authority Police
*List of navigation authorities in the United States References
Bibliography
* Richard A. Colignon. "Power Plays: Critical Events in the Institutionalism of the Tennessee Valley Authority" (1997)
* Creese, Walter L. "TVA's Public Planning: The Vision, the Reality." U. of Tennessee Press, 1990. stresses utopian goals
* Erwin C. Hargrove and Paul H. Conkin, eds. "TVA Fifty Years of Grass-Roots Bureaucracy" (1963)
* Erwin E. Hargrove, "Prisoner of Myth: The Leadership of the Tennessee Valley Authority, 1933-1990" (1994)
* Preston J. Hubbard, "Origins of the TVA: The Muscle Shoals Controversy, 1920-1932" Vanderbilt University Press, 1961
* David Lilienthal. "TVA: Democracy on the March" (1944) promoted TVA for cheap power, grassroots regional democracy, environmental conservation, and the peaceful use of energy. Called it model for rest of USA and Europe.
* Michael J. McDonald and John Muldowny. "TVA and the Dispossessed: The Resettlement of Population in the Norris Dam" (1982), highly critical of TVA
* Thomas K McCraw. "TVA and the power fight, 1933-1939" (1971)* [http://www.questia.com/PM.qst?a=o&d=96870430 Arthur E. Morgan. "The Making of the TVA" (1974)] by its first chairman
* Steven M. Neuse. "TVA at Age Fifty- Reflections and Retrospect" "Public Administration Review", Vol. 43, No. 6 (Nov. - Dec., 1983) , pp. 491-499 [http://links.jstor.org/sici?sici=0033-3352%28198311%2F12%2943%3A6%3C491%3ATAAFRA%3E2.0.CO%3B2-J online at JSTOR]
* Steve M. Neuse. "David E. Lilienthal: The Journey of an American Liberal" (1996).
* Russell, Dean. "The TVA Idea", The Foundation for Economic Education, Irving-On-Hudson, New York, 1949.
* [http://www.questia.com/PM.qst?a=o&d=72373841 Philip Selznick. "TVA and the Grass Roots: A Study in the Sociology of Formal Organization " (1949)]
* Edward Shapiro. "The Southern Agrarians and the Tennessee Valley Authority," "American Quarterly," Vol. 22, No. 4. (Winter, 1970), pp. 791-806. [http://links.jstor.org/sici?sici=0003-0678%28197024%2922%3A4%3C791%3ATSAATT%3E2.0.CO%3B2-R online at JSTOR] shows that these conservatives supported TVA as a counterpoint to northern big businessExternal links
* [http://www.tva.gov/index.htm TVA home page]
* [http://diglib.lib.utk.edu/wpa WPA Photographs of TVA Archaeological Projects]
* [http://www.tva.gov/environment/air/ontheair/sami.htm Southern Appalachian Mountain Initiative - division of TVA]
*YouTube|eoge1KmeMy8|The New Deal and TVA
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