Obama Budget Could Put TVA Up for Sale

Buried in President Obama’s budget is a paragraph that could lead to the sale of the Tennessee Valley Authority. The document says TVA may be one of the federal agencies that have “achieved their original objectives.”

TVA remains the country’s largest public power utility.

TVA was established in the 1930’s to provide low-cost electricity to a struggling region. It’s now entirely self-funded, relying on the sale of electricity and not tax payers.

But the power provider has racked up nearly $30 billion in debt and needs to borrow nearly that much money for future projects.

The President’s budget calls for a “strategic review” that could include selling TVA “in part or as a whole.”

A statement from TVA calls the move “unexpected.” The utility says it will cooperate with the review and contends TVA offers “the best value for the region.”

Tennessee Senator Lamar Alexander calls it a “bad idea,” suggesting that tselling the utility might lead to increased electricity rates.

Senator Bob Corker says he was not consulted about the possible sale, which he figures wouldn’t make enough to pay off TVA’s debt.

“Now there may be other reasons to look at that,” Corker says. “But I think the budget was about trying to approach deficit reduction. It’s probably not an idea that gets a lot of traction.”