Big News: TVA decreases its overall debt by $1.05 billion dollars for FY 2014, but the board approved a $3 billion increase in Power Bond sales - 2015 budget, $1 billion in nuclear power debt; a rate increase was approved at 1.5% ; energy efficiency budget slashed by 25%.
KEY PRESENTATION POINTS - TVA BOARD APPROVED:
1) a $10.7 billion budget for fiscal 2015; 2) a rate increase was approved at 1.5%; 3) increase debt by $3 billion-power bond sales; 4) TVA will spend $3.5 billion on new projects in fiscal 2015 -- the highest capital budget in TVA's history. 5) $1 billion approved for 2015 nuclear expansion; 6) TVA's debt increase by $1 billion next year, this will increase TVA's total debt obligations above $28 billion. TVA has a $30 billion statutory debt limit. 7) TVA will have eliminated 2000 jobs by September of 2014. 8) Reduce energy efficiency measures by 25%. This resulted in a comment from board member Dr. Marilyn Brown, an Energy Efficiency Expert from Georgia Tech. She said: "TVA Energy efficiency provides a significant benefit to TVA and its customers and I believe this cut is a reflection of a false economy, it is penny wise and pound foolish...co-generation and combined heat to power is an untapped asset."
Dr, Marilyn Brown
Although Dr. Brown raised questions, there was no stand for what is right. Justifying bad decisions with a speech does not provide confidence in the TVA Board. It is not Dr. Browns fault, at least she spoke up, all bare responsibility. Folks, slashing that which saves money for rate payers in order to make TVA Executives feel good is ridiculous and a dangerous precedent for those who are suppose to govern the TVA. This confirms the notion of "rubber stamp decision making," all has been discussed and approved before hand.
ENERGY EFFICIENCY GETS THE AX!
Why do leaders on this board, who should know better, vote for that which benefits executives instead of the people whom they serve. Did the CEO or any executive agree to cut their pay and bonuses by 25%???
TVA CEO
2015 PRIORITIES as expresed by TVA's CEO/President Bill Johnson
(CLICK ON IMAGES BELOW FOR AN EXPANDED VIEW)
OLD STORY FOR TVA
TVA rate increases were a primary reason for the closing of the Revere Copper Brass and Aluminum facility in Scottsboro, Alabama and the subsequent Scottsboro Aluminum. TVA refused to negotiate with the company, they closed their doors.
TVA FINANCES
From the Chattanooga Times Free Press (link above)
By the numbers - TVA 2015 Budget
* $10.7 billion - Budget for fiscal 2015, down from the $11.2 billion budget in the current fiscal year when cold winter pushed up sales
* $199 million - Increase from 2 percent wholesale rate increase (1.5 percent at the retail level)* $3.5 billion - Capital budget, the highest in TVA history
* $1.02 billion - Increase in TVA debt
* $500 million - Amount of annual operating expenses cut from TVA's budget compared with three years ago
*$594 million - Projected net income
Source: Tennessee Valley Authority
Outstanding - the $634 million excess in the cash flow was utilized to pay down the debt.
TVA PENSION WOES
TVA pension plan is $4 billion short: http://www.timesfreepress.com/news/2014/jun/28/tva-ends-traditional-pension-for-new-hires/
ENERGY ASSET BREAKDOWN
TVA "nuclear dog" is the cause of TVA's debt. TVA plans for additional nuclear expansion by borrowing $1 billion in power bond sales.
TVA BOARD MEETING August 21, 2014
Power Point slides link: Presentation
VIDEO OF CITIZEN PRESENTATIONS AND BOARD MEETING
BREDL/BEST/MATRR Member Sandy Kurtz Presentation
No comments:
Post a Comment