The TVA Nuclear Energy Socialist Triad

TVA's refusal to disclose true construction costs of Bellefonte Nuclear Power Plant. A government agency using a bogus excuse to hide construction costs which would place the TVA over the Congressional mandated budget cap.

Nuclear Energy Power Producers include all in the Nu-Start Consortium: http://www.nustartenergy.com/Consortium.aspx
TVA supports the socialist model for our nation. Government sponsored business, no oversight, no competition. Creates massive debt paid for by taxpayers and Electric Rate Payers in the TVA service area.
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This article is interesting taking into consideration the collapse of Fannie Mae and Freddie Mac. http://www.eia.doe.gov/oiaf/servicerpt/subsidy1/boxtxt_2.html
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The TVA's latest schemes involving the Newly Formed 7 States Power Co-ops. Local public utilities within the TVA Service area are the members of this latest TVA socialistic corporate scheme: "On September 30, 2008, Seven States Power Corporation (“SSPC”) exercised an option to buy a portion of TVA’s Southaven Power Plant, a combined-cycle electric generating facility (the “facility”) located in Southaven, Mississippi. SSPC bought this portion through its wholly-owned subsidiary, Seven States Southaven LLC (“SSSL”). SSSL paid TVA approximately $325 million and purchased an undivided 69.69 percent interest in the facility. Funding for the purchase was provided through loans obtained by SSSL. The loans were provided by JPMorgan Chase Bank, N.A., CoBank, ACB, and Branch Banking and Trust Company... " from TVA required SEC filings, Form 8K. TVA has not submitted their 3rd Quarter, Form 10K. Something to hide maybe? TVA Debt, $25 billiion and climbing! We are in the 1st Quarter of Fiscal Year 2009.

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Some old truths about the TVA from the TVA Consumer Protection Bill, Senate Bill 1323, October 1999: http://bulk.resource.org/gpo.gov/hearings/106s/63227.pdf

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Links to other TVA DEBT articles within "Watch for Snakes." https://www.blogcatalog.com/blogs/watch-for-snakes-n-scottsboro/posts/tag/tva%20debt/

A Close Look at TVA Debt by the Experts.

Can you spell T-R-O-U-B-L-E for the TVA. The following are articles explaining the seriousness of the financial situation of the TVA.

The first article is from the Journal of Strategic Management Education. http://home.earthlink.net/~roubidoux/TVA_9-17-03.pdf A very striking point is the financial forecasting by the TVA concerning their debt. The TVA debt in 1997 was $27 billion. TVA's forecast in 1997 stated their debt would be reduced to $14 billion by 2007. Remarkably, TVA has not met their debt forecast, their debt is $22.6 billion as of December 31, 2007 according to the TVA's Form 10Q, December 31, 2007. In short the article states the TVA is in serious trouble. "There is a long history of inefficient management, poor forecasting performances and...[a] real threat of bankruptcy if it were not for the implicit guarantee of outstanding debt by the Federal Financing Bank." However, "...since the guarantee is implicit not explicit in the bond agreement, there is no assurance that bond holders will obtain the full value of their debt holdings should the TVA's financial situation deteriorate." The article goes on to recommend privatization in stages before a financial collapse occurs.

In the next article, http://www.rsmenergy.com/AugustReport.PDF a similar concern is expressed. It describes the TVA as: "The TVA-Taxpayers ENRON...The Bush administration has criticized TVA for its excessive debt and lack of plans to reduce it. TVA has now announced a plan to avoid going further into debt by having its distributors issue tax-free bonds, and then prepay TVA for future power deliveries." To top off TVA problems there is this: "If TVA’s near useless assets were written down to value, TVA would be insolvent (liabilities exceed assets)." TVA's leaseback and prepay plans are also problematic. "Both these leaseback and prepay plans have substantially the same impact as debt on TVA’ s financial condition. In fact, this is very costly debt at that. Further, the distributors will become more financially leveraged. So rather than developing and implementing a plan to work itself out of debt, TVA is digging itself and its distributors deeper into financial trouble."

Moves to privatize the TVA are described in these articles: http://www.knoxnews.com/news/2008/may/11/bill-calls-federal-oversight-tva/ and http://www.nemw.org/tvareport.htm Private utility companies have seen the TVA as unacceptable competition backed by the Federal Financing Bank. Due to new construction of new nuclear plants by the TVA it appears the competition surrounding the Tennessee Valley Region may get their wish, financial insolvency of the TVA. Of course, Nu-Start is waiting in the wings to purchase the assets of a financial insolvent TVA.

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Addition: Financial Reports link http://www.tva.gov/finance/reports/forwardlooking_sec.htm

Click on the accept button and it will take you to the Financial Reports of the TVA. The 10Q reports are the quarterly filings, the May 12, 2008 is the last 10Q quarterly filing. On page 32 of that report you will find the total debt and debt interest for the TVA.

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The question remains, how will the TVA pay for their proposed reactors at Bellefonte?

 

The "Quaint Essential" Move to End the TVA

Why the Tennessee Valley Authority Must Be Reformed or "Why Yankees hate our power."

Update: Mar 29, 2011. Unfortunately the active link to this information has been removed from the web. However, here is a synopsis. Below you will find a Christian Science Monitor article concerning the bloated debt of the TVA due to mismanagement and unnecessary investments into nuclear energy.

"Tennessee Report--Still Draining the Nation" http://www.tnreport.com/2009/09/still-draining-the-nation/

"PRESS CONFERENCE: RESTRUCTURE TVA"


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Rep. Rodney Frelinghuysen (R-NJ), Senator Jack Reed (R-RI), Rep.

Bob Franks (R-NJ) and the Northeast-Midwest Institute on Tuesday,

September 15, will hold a press conference to discuss pending

appropriation and policy issues facing the Tennessee Valley Authority

and to release RESTRUCTURE TVA: WHY THE TENNESSEE VALLEY AUTHORITY

MUST BE REFORMED. The session was postponed from last week.



The Institute's 54-page monograph explains that the nation's

largest electric utility suffers an enormous $29-billion debt,

mismanagement, and falling political support at the very time that

lawmakers are restructuring the nation's electric utility industry and

transforming the way consumers buy electricity. It also describes

TVA's taxpayer subsidies and exemptions from federal and state laws

and regulations, its role as one of the nation's largest air

polluters, its six-figure bonuses and secret retirement funds for top

executives, and its non-competitive consulting contracts to cronies of

those officials. The report calls for restructuring this outmoded

government agency.

More information: http://www.csmonitor.com/Commentary/Opinion/2009/0225/p09s01-coop.html

This should be a plain message for the TVA Board and it's executives, do not squander our resources. This should also serve as a warning for citizens of the valley, particularly politicians who have "nuclear tunnel vision." There is a move to end the TVA. Ending the TVA would have a serious negative economical impact on the Tennessee Valley Region of the Southeast. Debt due to expensive nuclear power plants is a sure fire way to end the TVA.

Is that the buzzards of Nu-Start circling. I bet they would love to pick up the pieces of a bankrupted TVA for pennies on the dollar?!

The move in 2010 has been renewed due to deceitful mismangement of the TVA.

Nuclear Plants and Sinkholes Don't Mix

Why would the TVA build a Nuclear Facility on known "sinkhole terrain (Karst Terrain)?" Maps available through the University of Alabama Historical Maps Cartography Division demonstrate that TVA/Nu-Start has omitted critical information in its COL Application Environmental Impact Statement (EIS) to the Nuclear Regulatory Commission. Sinkholes are clearly shown on 1970 topographic maps of the area. The TVA also states there are no springs in the area other than trickles. Obviously they do not know the history of the area or are not privy to the maps at the University of Alabama.

Bellefonte Unit #3 will be located over a historically mapped sinkhole. Unit 3 is the one in the top picture on the right. The entire area is a sinkhole risk as indicated on the 1977 USGS Jackson County sinkhole Map. The TVA has ignored critical scientific information in their environmental impact statement.