New Report: Additional Congressional Oversight Needed to Ensure Tennessee Valley Authority Delivers Low-cost, Reliable Power for Customers

WASHINGTON, D.C. – A new report released today highlights critical steps Congress can take to improve the Tennessee Valley Authority (TVA’s) transmission planning to make electricity service more affordable, reliable and resilient for customers. Produced by the American Council on Renewable Energy (ACORE) in partnership with the Southern Renewable Energy Association (SREA) and in collaboration with Paul Hastings LLP, the report outlines actionable recommendations to prepare TVA for growing energy demands, more frequent extreme weather events, and develop or purchase the lowest-cost generation.  

This report is particularly timely as TVA conducts its legally mandated Integrated Resource Plan (IRP) process, an undertaking that currently does not require inclusion of the transmission expansion options necessary to ensure procurement of the lowest-cost power options. Notably, the TVA service territory experienced rolling blackouts for the first time in its more than 90-year history during Winter Storm Elliott in 2022, when the region’s power supply could not meet demand. An extra gigawatt of transmission ties to other regions could have saved TVA consumers up to $95 million during the storm.  

“As the region navigates some of the most significant challenges to the power sector since those that inspired the TVA Act, TVA’s ratepayers would benefit from transmission planning processes consistent with the best practices other grid planners are using across the nation,” said Jonathan Geldof, Senior Government Affairs Manager for ACORE’s Macro Grid Initiative. “It’s encouraging to see Congress and TVA’s Board of Directors already taking steps to improve TVA’s processes and this report offers additional recommendations for ensuring low-cost power in the regions’ future.” 

Amid skyrocketing load projections, integrating transmission and generation planning will help ensure reliable, affordable power for TVA’s 10 million customers. 

The report, “Recommendations for Reducing Costs and Improving Reliability for Tennessee Valley Authority Customers,” provides various policy interventions for Congress to improve TVA’s transmission planning, including: 

  • Reforming TVA’s Board 
  • Reforming TVA’s IRP Process 
  • Requiring Expanded Interregional Transmission Planning 
  • Permitting Reform 
  • Bringing TVA Under Federal Energy Regulatory Commission Jurisdiction 

“With increasing challenges to reliability of the TVA system during extreme weather events, like Winter Storm Elliott, and the timely and affordable integration of renewable energy, transmission planning in the largest public power company in the U.S. needs an upgrade,” said Simon Mahan, SREA’s Executive Director. “Outdated processes that are often lacking in transparency for the broader public have been the status quo in TVA for the past 90 years, but this approach will not be sufficient for the future of the organization. This study on improvements to TVA transmission planning provides sound advice on how to confront and overcome these challenges.” 

Unlike traditional utilities, TVA’s Board of Directors is the only entity that oversees the IRP process. Congress can help ensure the board is equipped to work in the best interests of ratepayers by providing the directors with technical staff support to better assess TVA’s proposals. 

The report details these issues and more, recommending a suite of reform options for Congress to consider. 

To download a copy of the report, click here.  

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About ACORE: 
For over 20 years, the American Council on Renewable Energy (ACORE) has been the nation’s leading voice on the issues most essential to clean energy expansion. ACORE unites finance, policy, and technology to accelerate the transition to a clean energy economy. For more information, please visit www.acore.org. 

Media Contacts: 
Dylan Helms  
Manager, Communications, ACORE  
communications@acore.org  
917.971.7852   

Ellie Potter  
Sr. Public Affairs Manager, Macro Grid Initiative, ACORE  
potter@acore.org 
202.505.5589 

Jamie Moody 
Communications Director, SREA 
jamie@southernrenewable.org  
501.454.1260