Today the TVA Board met in Knoxville for its 4th Quarter board meeting. There was grim news originating from the TVA Board.
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Fuel costs continue to rise. Coal has increased 236%, Fossil Fuels have increased 23.9% and Nuclear fuels have increased 9.5%. $2 Billion in long term bonds were authorized, further increasing TVA's massive debt. It was reported at the end of this fiscal year there will be a $175 million deficit in cash flow. To correct the problem the Board authorized a $385 million dollar loan to get the cash flow up to the required $200 million, it must be nice to say "yea" and the cash returns, at the expense of the TVA's ratepayers and taxpayers. A 20.5% rate increase was approved by the board. Rate payers may expect to see the increase on the October electric bill.
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TVA is going further in the hole. It was reported TVA debt is at $25,093,000,000. With $2 billion more tacked on to bonds issued that will bring the interest payments close to $23,000,000,000 for an approximate total of $48,000,000,000 debt and interest on the TVA debt. An approximately $3 Billion increase over last quarters debt and debt interest.
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Will just 1, one, local politician please ask the TVA what actual construction costs are and how they will pay for a Bellefonte Nuclear Plant with a $44Billion debt and interest on the debt? Particularly when there is a $30Billion Congressional Debt and Interest Cap.
5 comments:
Garry - TVA doesn't have $48B in debt. When you borrow money on a house you borrow $50k. You owe $50k, not $50k + plus all the interest. Interest expense is the cost of borrowing money over time. TVA owes $25B and has $10B in revenue. If I used your logic, TVA could pay that off in 2.5 years. Quick publishing erroneous, misleading information about TVA.
Surely you jest? To demonstrate your lack of understanding you state, "When you borrow money on a house you borrow $50k. You owe $50k, not $50k + plus all the interest."
Yes Mr. Anonymous, you also pay interest on the $50K borrowed. The 50K cost of your house along with its interest is the total cost of the house. Interest is how the bank, financial institution or individual makes money.
Here are some more facts. The TVA does not always operate at a positive cash flow, one of the reasons for their debt, poor management resulting in excessive spending. At the end of the 1st quarter of 2008 the TVA demonstrated a net income loss of $17 million dollars. For end of year 2007 their gross operating revenue was $9.244 billion. However, once the bills were paid that translated into a net income of $383 million. At the end of this fiscal year they will have to borrow money to have a positive cash flow.
OK Mr. Know-it-All Garry. If you sell your $50k house, do you still all the money you would have paid in interest?? No, of course not. So, Mr. Simple mind, you don't add the total amount of interest you will pay on a loan or debt to the loan or debt and say, duh, I owe $48B.
Now, if you can possibly get your small mind around the concept of interest, please answer the next question with a little straight forward common sense.
What level of debt for TVA is ok? None, $5B, $10B, or ?. To get to any of these, the people in the Valley that use TVA power will have to pay more on their bill. How much more are you willing to pay to wipe out all of TVA's debt?
You really need to get a life or at least go back to school and learn some basic financial concepts and what a good citizen should be doing with his/her time.
I don't think posing with a stuffed bear is doing you or the bear any good. In fact, that bear is probably a lot smarter than you.
Take some advice, shut up and go fishing.
You give much credit to the old saying, "an ignorant voter is a dangerous voter." If you are old enough to vote.
I'm wondering if you even realize what you are saying or the ignorance portrayed in your comment. If you would like answers to your questions it will be necessary for you to apologize for your ridiculous attack.
Ol'Bear is a wood carving, it is not stuffed.
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