Tennessee Valley Authority

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Tennessee Valley Authority

The Norris Dam was one of the first major projects of the Tennessee Valley Authority in 1942. LIBRARY OF CONGRESS
The Norris Dam was one of the first major projects of the Tennessee Valley Authority in 1942.
LIBRARY OF CONGRESS

In 1933, U.S. President Franklin Delano Roosevelt approved the passage of the Tennessee Valley Authority Act (16 U.S.C.A. § 831 et seq.). The act provided for a source of hydroelectric power, control of a troublesome flood situation, revitalization of forest areas, and navigation and economic benefits for the region. These goals, announced during a devastating nationwide depression, made the Tennessee Valley Authority (TVA) an ambitious project of the era.

The idea for the project was originally developed in 1918, when two nitrate facilities and a dam were constructed at Muscle Shoals, Alabama, on the Tennessee River. Previously the area had been prone to severe floods, and water travel was impeded by sandbanks. The area had abundant natural resources, but the surrounding basin was depleted, and the region had experienced a depressed economy even before the hard times suffered throughout the nation in the Depression of the 1930s.

Politicians and developers of the project envisioned a growth of industry and water power in the Tennessee Valley, as well as the manufacture of low-priced fertilizer and public control of the valuable resources. Debates over whether the project area should be rented to private parties or be controlled by the government continued throughout the 1920s. Senator george w. norris of Nebraska was instrumental in the passage of measures by Congress advocating government control, but these bills did not receive presidential approval until 1933, when Roosevelt based his Tennessee Valley plan on the Norris proposals.

Roosevelt's Tennessee Valley Act authorized the establishment of a corporation owned by the federal government and directed by Arthur E. Morgan, the chairman, and Harcourt A. Morgan, and David Lilienthal. The early years of TVA were fraught with adversity, particularly when its constitutionality was questioned. Disputes between the directors and an investigation conducted by Congress hampered its initial achievements, but the TVA continued its work despite these difficulties.

The TVA succeeded in its projected goals. Since the development of its dams and reservoirs, the region has not been subjected to serious floods. The electrical system developed by the TVA afforded the region power at a low cost, and throughout the decades, power development has been extended to include coal and nuclear systems. The TVA also benefited agrarian interests by encouraging conservation, replenishment of forests, and agricultural and fertilizer research. Although the power program of the TVA is financially self-supporting today, other programs conducted by the authority are financed primarily by appropriations from Congress.

Further readings

Colignon, Richard A. 1997. Power Plays: Critical Events in the Institutionalization of the Tennessee Valley Authority. Albany: State Univ. of New York Press.

Creese, Walter L. 1990. TVA's Public Planning: The Vision, the Reality. Knoxville: Univ. of Tennessee Press.

References in periodicals archive ?
The TVA Act limits the amount of additional debt that TVA can issue to not more than $30 billion outstanding at any one time (As of March 31, 2010, TVA had $23.
The financing issued by Southaven Combined Cycle Generation LLC is not a direct obligation of TVA or the United States, and is not federally guaranteed.
TVA is the nation's largest public power utility overseeing a substantial power generation and transmission (G&T) system, serving a territory approximating 80,000 square miles located in Tennessee, northern Alabama, northeast Mississippi, southwestern Kentucky, and small parts of Virginia, Georgia and North Carolina.
Weather fluctuations are not something new for TVA, but these uncontrollable conditions impact TVA's financial results," Chief Financial Officer John Thomas said.
For FY 2008, TVA served nearly nine million people and generated $10.
Unprecedented storms hit the TVA service area in late April, leaving hundreds of thousands of Tennessee Valley households and businesses without power.
In developing the budget, TVA followed guiding principles of the strategic plan, which include paying down existing debt before assets are fully depreciated, using new debt to help finance new generation, and holding growth in operating and maintenance costs to less then the growth in electricity sales.
At less than half the cost of new construction, the fully permitted Magnolia plant will be a cost-effective addition to the TVA system," Irvin said.
Based on scorecard benchmarks, TVA will update its Sustainability Plan by June and add that to what is posted on the company's website.
By not increasing base prices, TVA expected to have a slight net operating loss in the first quarter," Chief Financial Officer John Thomas said.
But TVA did have a good year when we produced more electricity than the year before with lower revenues.
We first decided to invest in TVA because we realized it can help us calculate accurate, risk-adjusted views of enterprise profitability," said Jannicke Flesland, assistant general manager of Financial Reporting at DnB NOR.