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The Tennessee Valley Authority (TVA) is a federally owned
electric utility An electric utility is a company in the electric power industry (often a public utility) that engages in electricity generation and distribution of electricity for sale generally in a regulated market. The electrical utility industry is a major pr ...
corporation A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and ...
in the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
. TVA's service area covers all of
Tennessee Tennessee ( , ), officially the State of Tennessee, is a landlocked state in the Southeastern region of the United States. Tennessee is the 36th-largest by area and the 15th-most populous of the 50 states. It is bordered by Kentucky to th ...
, portions of
Alabama (We dare defend our rights) , anthem = "Alabama" , image_map = Alabama in United States.svg , seat = Montgomery , LargestCity = Huntsville , LargestCounty = Baldwin County , LargestMetro = Greater Birmingham , area_total_km2 = 135,765 ...
,
Mississippi Mississippi () is a state in the Southeastern region of the United States, bordered to the north by Tennessee; to the east by Alabama; to the south by the Gulf of Mexico; to the southwest by Louisiana; and to the northwest by Arkansas. Miss ...
, and
Kentucky Kentucky ( , ), officially the Commonwealth of Kentucky, is a state in the Southeastern region of the United States and one of the states of the Upper South. It borders Illinois, Indiana, and Ohio to the north; West Virginia and Virginia ...
, and small areas of
Georgia Georgia most commonly refers to: * Georgia (country), a country in the Caucasus region of Eurasia * Georgia (U.S. state), a state in the Southeast United States Georgia may also refer to: Places Historical states and entities * Related to the ...
,
North Carolina North Carolina () is a state in the Southeastern region of the United States. The state is the 28th largest and 9th-most populous of the United States. It is bordered by Virginia to the north, the Atlantic Ocean to the east, Georgia and ...
, and
Virginia Virginia, officially the Commonwealth of Virginia, is a state in the Mid-Atlantic and Southeastern regions of the United States, between the Atlantic Coast and the Appalachian Mountains. The geography and climate of the Commonwealth ar ...
. While owned by the federal government, TVA receives no taxpayer funding and operates similarly to a private for-profit company. It is headquartered in
Knoxville, Tennessee Knoxville is a city in and the county seat of Knox County in the U.S. state of Tennessee. As of the 2020 United States census, Knoxville's population was 190,740, making it the largest city in the East Tennessee Grand Division and the state' ...
, and is the sixth largest power supplier and largest public utility in the country. The TVA was created by Congress in 1933 as part of President
Franklin D. Roosevelt Franklin Delano Roosevelt (; ; January 30, 1882April 12, 1945), often referred to by his initials FDR, was an American politician and attorney who served as the 32nd president of the United States from 1933 until his death in 1945. As the ...
's New Deal. Its initial purpose was to provide
navigation Navigation is a field of study that focuses on the process of monitoring and controlling the movement of a craft or vehicle from one place to another.Bowditch, 2003:799. The field of navigation includes four general categories: land navigation, ...
,
flood control Flood control methods are used to reduce or prevent the detrimental effects of flood waters."Flood Control", MSN Encarta, 2008 (see below: Further reading). Flood relief methods are used to reduce the effects of flood waters or high water level ...
,
electricity generation Electricity generation is the process of generating electric power from sources of primary energy. For utilities in the electric power industry, it is the stage prior to its delivery ( transmission, distribution, etc.) to end users or its s ...
,
fertilizer A fertilizer (American English) or fertiliser (British English; see spelling differences) is any material of natural or synthetic origin that is applied to soil or to plant tissues to supply plant nutrients. Fertilizers may be distinct from ...
manufacturing,
regional planning Regional planning deals with the efficient placement of land-use activities, infrastructure, and settlement growth across a larger area of land than an individual city or town. Regional planning is related to urban planning as it relates land ...
, and
economic development In the economics study of the public sector, economic and social development is the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and ...
to the
Tennessee Valley The Tennessee Valley is the drainage basin of the Tennessee River and is largely within the U.S. state of Tennessee. It stretches from southwest Kentucky to north Alabama and from northeast Mississippi to the mountains of Virginia and North Car ...
, a region that had suffered from lack of infrastructure and poverty during the Great Depression, relative to the rest of the nation. TVA was envisioned both as a power supplier and a regional economic development agency that would work to help modernize the region's economy and society. Later it evolved primarily into an electric utility.. It was the first large regional planning agency of the U.S. federal government and remains the largest. Under the leadership of David E. Lilienthal, the TVA also became the global model for the United States' later efforts to help modernize
agrarian societies An agrarian society, or agricultural society, is any community whose economy is based on producing and maintaining crops and farmland. Another way to define an agrarian society is by seeing how much of a nation's total production is in agriculture ...
in the developing world. Historically, the TVA has been documented as a success in its efforts to modernize the Tennessee Valley and helping to recruit new employment opportunities to the region. Despite its successes, historians have criticized its use of
eminent domain Eminent domain (United States, Philippines), land acquisition (India, Malaysia, Singapore), compulsory purchase/acquisition (Australia, New Zealand, Ireland, United Kingdom), resumption (Hong Kong, Uganda), resumption/compulsory acquisition (Austr ...
; it resulted in the
displacement Displacement may refer to: Physical sciences Mathematics and Physics * Displacement (geometry), is the difference between the final and initial position of a point trajectory (for instance, the center of mass of a moving object). The actual path ...
of over 125,000 Tennessee Valley residents to build the agency's infrastructure projects.


Operation

The Tennessee Valley Authority is a government-owned
corporation A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and ...
created by U.S. Code Title 16, Chapter 12A (Tennessee Valley Authority Act of 1933). It was initially founded as an agency to provide general
economic development In the economics study of the public sector, economic and social development is the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and ...
to the region through power generation, flood control, navigation assistance, fertilizer manufacturing, and agricultural development. Since the Depression years, it has developed primarily into a power utility. Despite its shares being owned by the federal government, TVA operates like a private corporation, and receives no taxpayer funding. The TVA Act authorizes the company to use
eminent domain Eminent domain (United States, Philippines), land acquisition (India, Malaysia, Singapore), compulsory purchase/acquisition (Australia, New Zealand, Ireland, United Kingdom), resumption (Hong Kong, Uganda), resumption/compulsory acquisition (Austr ...
. TVA provides electricity to approximately ten million people through a diverse portfolio that includes
nuclear Nuclear may refer to: Physics Relating to the nucleus of the atom: * Nuclear engineering *Nuclear physics *Nuclear power *Nuclear reactor *Nuclear weapon *Nuclear medicine *Radiation therapy *Nuclear warfare Mathematics *Nuclear space *Nuclear ...
,
coal-fired Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal is formed when dea ...
,
natural gas Natural gas (also called fossil gas or simply gas) is a naturally occurring mixture of gaseous hydrocarbons consisting primarily of methane in addition to various smaller amounts of other higher alkanes. Low levels of trace gases like carbo ...
-fired, hydroelectric, and
renewable A renewable resource, also known as a flow resource, is a natural resource which will replenish to replace the portion depleted by usage and consumption, either through natural reproduction or other recurring processes in a finite amount of ti ...
generation. TVA sells its power to 154 local power utilities, 5 direct industrial and institutional customers, and 12 area utilities. In addition to power generation, TVA provides flood control with its 29 hydroelectric dams. Resulting lakes and other areas also allow for recreational activities. The TVA also provides navigation and land management along rivers within its region of operation. TVA also assists governments and private companies on economic development projects. TVA's headquarters are located in downtown Knoxville, with large administrative offices in Chattanooga (training/development; supplier relations; power generation and transmission) and Nashville (economic development) in Tennessee and Muscle Shoals, Alabama. TVA was originally headquartered in Muscle Shoals, but gradually moved its headquarters to Knoxville. At one point, TVA's headquarters were housed in the Old Federal Customs House at the corner of Clinch Avenue and Market Street. The building is now operated as a museum and is listed on the
National Register of Historic Places The National Register of Historic Places (NRHP) is the United States federal government's official list of districts, sites, buildings, structures and objects deemed worthy of preservation for their historical significance or "great artistic ...
. The Tennessee Valley Authority Police are the primary law enforcement agency for the company. Initially part of the TVA, in 1994 the TVA Police was authorized as a federal law enforcement agency.


Board of directors

The Tennessee Valley Authority is governed by a nine-member part-time board of directors, nominated by the
President of the United States The president of the United States (POTUS) is the head of state and head of government of the United States of America. The president directs the executive branch of the federal government and is the commander-in-chief of the United States ...
and confirmed by the Senate. A minimum of seven of the directors are required to be residents of TVA's service area. The members select the chair from their number, and serve five-year terms. They receive annual stipends of $45,000 ($50,000 for the chair). The board members choose the TVA's
chief executive officer A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especial ...
.


History


Background

During the 1920s and the 1930s, Americans began to support the idea of public ownership of utilities, particularly hydroelectric power facilities. Many believed privately owned power companies were charging too much for power, did not employ fair operating practices, and were subject to abuse by their owners (utility holding companies), at the expense of consumers. The concept of government-owned
generation A generation refers to all of the people born and living at about the same time, regarded collectively. It can also be described as, "the average period, generally considered to be about 20–⁠30 years, during which children are born and gr ...
facilities selling to publicly owned distribution utilities was controversial, however, and remains so today. During his 1932 presidential campaign,
Franklin D. Roosevelt Franklin Delano Roosevelt (; ; January 30, 1882April 12, 1945), often referred to by his initials FDR, was an American politician and attorney who served as the 32nd president of the United States from 1933 until his death in 1945. As the ...
expressed his belief that private utilities had "selfish purposes" and said, "Never shall the federal government part with its sovereignty or with its control of its power resources while I'm president of the United States." Senator
George W. Norris George William Norris (July 11, 1861September 2, 1944) was an American politician from the state of Nebraska in the Midwestern United States. He served five terms in the United States House of Representatives as a Republican, from 1903 until 1913 ...
of
Nebraska Nebraska () is a state in the Midwestern region of the United States. It is bordered by South Dakota to the north; Iowa to the east and Missouri to the southeast, both across the Missouri River; Kansas to the south; Colorado to the sout ...
also distrusted private utility companies, and in 1920 blocked a proposal from industrialist
Henry Ford Henry Ford (July 30, 1863 – April 7, 1947) was an American industrialist, business magnate, founder of the Ford Motor Company, and chief developer of the assembly line technique of mass production. By creating the first automobile that ...
to build a private dam and create a utility to modernize the Tennessee Valley. The private sector practice of forming utility holding companies had resulted in them controlling 94 percent of generation by 1921, and they were essentially unregulated. In an effort to change this, Congress and Roosevelt enacted the
Public Utility Holding Company Act of 1935 The Public Utility Holding Company Act of 1935 (PUHCA), also known as the Wheeler-Rayburn Act, was a US federal law giving the Securities and Exchange Commission authority to regulate, license, and break up electric utility holding companies. It l ...
(PUHCA). In 1930, Norris sponsored the Muscle Shoals Bill, which would have built a federal dam in the valley, but it was vetoed by President
Herbert Hoover Herbert Clark Hoover (August 10, 1874 – October 20, 1964) was an American politician who served as the 31st president of the United States from 1929 to 1933 and a member of the Republican Party, holding office during the onset of the Gr ...
, who believed it to be socialistic. The idea behind the Muscle Shoals project became a core part of President
Franklin D. Roosevelt Franklin Delano Roosevelt (; ; January 30, 1882April 12, 1945), often referred to by his initials FDR, was an American politician and attorney who served as the 32nd president of the United States from 1933 until his death in 1945. As the ...
's New Deal program that created the Tennessee Valley Authority, however. Even by Depression standards, the Tennessee Valley was in dire economic straits in 1933. Thirty percent of the population was affected by
malaria Malaria is a mosquito-borne infectious disease that affects humans and other animals. Malaria causes symptoms that typically include fever, tiredness, vomiting, and headaches. In severe cases, it can cause jaundice, seizures, coma, or death. S ...
. The average income in the rural areas was $639 per year (equivalent to $ in ), with some families surviving on as little as $100 per year (equivalent to $ in ). Much of the land had been exhausted by poor farming practices, and the soil was
eroded Erosion is the action of surface processes (such as water flow or wind) that removes soil, rock, or dissolved material from one location on the Earth's crust, and then transports it to another location where it is deposited. Erosion is disti ...
and depleted. Crop yields had fallen, reducing farm incomes. The best timber had been cut, and 10% of forests were lost to fires each year.


Early history

President Franklin Delano Roosevelt signed the Tennessee Valley Authority Act (ch. 32, , codified as amended at , et seq.), creating the TVA. The agency was initially tasked with modernizing the region, using experts and electricity to combat human and economic problems. TVA developed fertilizers, and taught farmers ways to improve crop yields. In addition, it helped replant forests, control forest fires, and improve habitat for fish and wildlife. The Authority hired many of the area's unemployed for a variety of jobs: they conducted
conservation Conservation is the preservation or efficient use of resources, or the conservation of various quantities under physical laws. Conservation may also refer to: Environment and natural resources * Nature conservation, the protection and managem ...
,
economic development In the economics study of the public sector, economic and social development is the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and ...
, and
social program Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet Basic needs, basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refe ...
s. For instance, a
library A library is a collection of materials, books or media that are accessible for use and not just for display purposes. A library provides physical (hard copies) or digital access (soft copies) materials, and may be a physical location or a vir ...
service was instituted for this area. The professional staff at headquarters were generally composed of experts from outside the region. By 1934, TVA employed more than 9,000 people. The workers were classified by the usual racial and gender lines of the region, which limited opportunities for minorities and women. TVA hired a few African Americans, generally restricted for janitorial or other low-level positions. TVA recognized
labor unions A trade union (labor union in American English), often simply referred to as a union, is an organization of workers intent on "maintaining or improving the conditions of their employment", ch. I such as attaining better wages and benefits (su ...
; its skilled and semi-skilled blue collar employees were unionized, a breakthrough in an area known for corporations hostile to miners' and textile workers' unions. Women were excluded from construction work. Many local landowners were suspicious of government agencies, but TVA successfully introduced new agricultural methods into traditional farming communities by blending in and finding local champions. Tennessee farmers often rejected advice from TVA officials, so the officials had to find leaders in the communities and convince them that
crop rotation Crop rotation is the practice of growing a series of different types of crops in the same area across a sequence of growing seasons. It reduces reliance on one set of nutrients, pest and weed pressure, and the probability of developing resistant ...
and the judicious application of fertilizers could restore soil fertility. Once they had convinced the leaders, the rest followed. TVA immediately embarked on the construction of several hydroelectric dams, with the first,
Norris Dam Norris Dam is a hydroelectric and flood control structure located on the Clinch River in Anderson County and Campbell County, Tennessee, United States. The dam was the first major project for the Tennessee Valley Authority, which had been create ...
in upper East Tennessee, breaking ground on October 1, 1933. These facilities, designed with the intent of also controlling floods, greatly improved the lives of farmers and rural residents, making their lives easier and farms in the Tennessee Valley more productive. They also provided new employment opportunities to the poverty-stricken regions in the Valley. At the same time, however, they required the
displacement Displacement may refer to: Physical sciences Mathematics and Physics * Displacement (geometry), is the difference between the final and initial position of a point trajectory (for instance, the center of mass of a moving object). The actual path ...
of more than 125,000 valley residents or roughly 15,000 families, as well as some cemeteries and small towns, which caused some to oppose the projects, especially in rural areas. The projects also inundated several Native American archaeological sites, and graves were reinterred at new locations, along with new tombstones. The available electricity attracted new industries to the region, including
textile Textile is an umbrella term that includes various fiber-based materials, including fibers, yarns, filaments, threads, different fabric types, etc. At first, the word "textiles" only referred to woven fabrics. However, weaving is not the ...
mills Mills is the plural form of mill, but may also refer to: As a name * Mills (surname), a common family name of English or Gaelic origin * Mills (given name) *Mills, a fictional British secret agent in a trilogy by writer Manning O'Brine Places Uni ...
, providing desperately needed jobs, many of which were filled by women. A few regions of the Tennessee Valley did not receive electricity until the late 1940s and early 1950s, however. TVA was one of the first federal
hydropower Hydropower (from el, ὕδωρ, "water"), also known as water power, is the use of falling or fast-running water to produce electricity or to power machines. This is achieved by converting the gravitational potential or kinetic energy of a w ...
agencies, and was quickly hailed as a success. While most of the nation's major hydropower systems are federally managed today, other attempts to create similar regional corporate agencies have failed. The most notable was the proposed Columbia Valley Authority for the Columbia River in the
Pacific Northwest The Pacific Northwest (sometimes Cascadia, or simply abbreviated as PNW) is a geographic region in western North America bounded by its coastal waters of the Pacific Ocean to the west and, loosely, by the Rocky Mountains to the east. Tho ...
, which was modeled off of TVA, but did not gain approval.


World War II

During
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposing ...
, the U.S. needed greater
aluminum Aluminium (aluminum in American and Canadian English) is a chemical element with the symbol Al and atomic number 13. Aluminium has a density lower than those of other common metals, at approximately one third that of steel. It ha ...
supplies to build airplanes. Aluminum plants required large amounts of electricity. To provide the power, TVA engaged in one of the largest hydropower construction programs ever undertaken in the U.S. By early 1942, when the effort reached its peak, 12 hydroelectric plants and one coal-fired steam plant were under construction at the same time, and design and construction employment reached a total of 28,000. In its first eleven years, TVA constructed a total of 16 hydroelectric dams. The largest project of this period was the
Fontana Dam Fontana Dam is a hydroelectric dam on the Little Tennessee River in Swain County, North Carolina, Swain and Graham County, North Carolina, Graham counties, North Carolina, United States. The dam is operated by the Tennessee Valley Authority, which ...
. After negotiations led by then-Vice-President
Harry Truman Harry S. Truman (May 8, 1884December 26, 1972) was the 33rd president of the United States, serving from 1945 to 1953. A leader of the Democratic Party, he previously served as the 34th vice president from January to April 1945 under Franklin ...
, TVA purchased the land from Nantahala Power and Light, a wholly owned subsidiary of Alcoa, and built Fontana Dam. Also in 1942, TVA's first coal-fired plant, the 267-megawatt
Watts Bar Steam Plant Watts Bar Steam Plant was a 267-megawatt ( MW), coal power plant operated by the Tennessee Valley Authority (TVA) located in Rhea County, Tennessee near the present site of Watts Bar Nuclear Plant and Watts Bar Dam. The plant was the first coal- ...
, began operation. The government originally intended the electricity generated from Fontana to be used by Alcoa factories. However, the abundance of TVA power was one of the major factors in the decision by the U.S. Army to locate
uranium enrichment Enriched uranium is a type of uranium in which the percent composition of uranium-235 (written 235U) has been increased through the process of isotope separation. Naturally occurring uranium is composed of three major isotopes: uranium-238 (238 ...
facilities in Oak Ridge, Tennessee for the world's first atomic bombs. This was part of an effort codenamed the
Manhattan Project The Manhattan Project was a research and development undertaking during World War II that produced the first nuclear weapons. It was led by the United States with the support of the United Kingdom and Canada. From 1942 to 1946, the project w ...
.


Increasing power demand

By the end of World War II, TVA had completed a navigation channel the length of the Tennessee River and had become the nation's largest electricity supplier. Even so, the demand for electricity was outstripping TVA's capacity to produce power from hydroelectric dams, and so TVA began to construct additional coal-fired plants. Political interference kept TVA from securing additional federal appropriations to do so, so it sought the authority to issue bonds. Several of TVA's coal-fired plants, including Johnsonville, Widows Creek,
Shawnee The Shawnee are an Algonquian-speaking indigenous people of the Northeastern Woodlands. In the 17th century they lived in Pennsylvania, and in the 18th century they were in Pennsylvania, Ohio, Indiana and Illinois, with some bands in Kentucky a ...
, Kingston, Gallatin, and
John Sevier John Sevier (September 23, 1745 September 24, 1815) was an American soldier, frontiersman, and politician, and one of the founding fathers of the State of Tennessee. A member of the Democratic-Republican Party, he played a leading role in Tennes ...
, began operations in the 1950s. In 1955 coal surpassed hydroelectricity as TVA's top generating source. On August 6, 1959, President
Dwight D. Eisenhower Dwight David "Ike" Eisenhower (born David Dwight Eisenhower; ; October 14, 1890 – March 28, 1969) was an American military officer and statesman who served as the 34th president of the United States from 1953 to 1961. During World War II, ...
signed into law an amendment to the TVA act, making the agency self-financing. During the 1950s, TVA's generating capacity nearly quadrupled. The 1960s were years of further unprecedented economic growth in the Tennessee Valley. Capacity growth during this time slowed, but ultimately increased 56% between 1960 and 1970. To handle a projected future increase in electrical consumption, TVA began constructing 500 kilovolt (kV) transmission lines, the first of which was placed into service on May 15, 1965. Electric rates were among the nation's lowest during this time and stayed low as TVA brought larger, more efficient generating units into service. Plants completed during this time included
Paradise In religion, paradise is a place of exceptional happiness and delight. Paradisiacal notions are often laden with pastoral imagery, and may be cosmogonical or eschatological or both, often compared to the miseries of human civilization: in parad ...
, Bull Run, and Nickajack Dam. Expecting the Valley's electric power needs to continue to grow, TVA began building nuclear power plants in 1966 as a new source of power. During the 1960s and 1970s, TVA was engaged in what was up to that time its most controversial project – the
Tellico Dam Tellico Dam is a dam built by the Tennessee Valley Authority (TVA) in Loudon County, Tennessee, on the Little Tennessee River as part of the Tellico Project. Planning for a dam structure on the Little Tennessee was reported as early as 1936 but ...
Project. The project was initially conceived in the 1940s but not completed until 1979.


1970s and 1980s

Significant changes occurred in the economy of the Tennessee Valley and the nation, prompted by energy crises in
1973 Events January * January 1 - The United Kingdom, the Republic of Ireland and Denmark 1973 enlargement of the European Communities, enter the European Economic Community, which later becomes the European Union. * January 15 – Vietnam War: ...
and
1979 Events January * January 1 ** United Nations Secretary-General Kurt Waldheim heralds the start of the '' International Year of the Child''. Many musicians donate to the '' Music for UNICEF Concert'' fund, among them ABBA, who write the so ...
and accelerating fuel costs throughout the decade. The average cost of electricity in the Tennessee Valley increased fivefold from the early 1970s to the early 1980s. TVA's first nuclear reactor, Browns Ferry Unit 1, began commercial operation on August 1, 1974. In the early 1970s, TVA set out to construct a total of 17 nuclear reactors, due to a projection of further rapid increase in power demand. However, in the 1980s, ten of these reactors were cancelled. On August 6, 1981, the Tennessee Valley Authority Board voted to defer the Phipps Bend plant, as well as to slow down construction on all other projects. The Hartsville and Yellow Creek plants were cancelled in 1984 and Bellefonte in 1988. Construction of the
Tellico Dam Tellico Dam is a dam built by the Tennessee Valley Authority (TVA) in Loudon County, Tennessee, on the Little Tennessee River as part of the Tellico Project. Planning for a dam structure on the Little Tennessee was reported as early as 1936 but ...
became controversial for political and environmental reasons, as laws had changed since early development in the valley. Scientists and other researchers had become more aware of the massive environmental effects of the dams and new lakes, and worried about preserving habitats and species. The Tellico Dam project was initially delayed because of concern over the snail darter, a threatened species. A lawsuit was filed under the Endangered Species Act and the U.S. Supreme Court ruled in favor of protecting the snail darter in '' Tennessee Valley Authority v. Hill'' in 1978. The project also received controversy regarding the intent of the dam, as the project's main motive was to support recreational and tourism development, unlike earlier dams constructed by TVA. Land acquired by eminent domain for the Tellico Dam and its reservoir, specifically land that encountered minimal inundation, was sold to private developers for the construction of present-day Tellico Village, a planned retirement community. The cancellation of several of the planned nuclear plants put the agency in deep financial trouble. Marvin T. Runyon became chairman of the TVA in January 1988. During his four-year tenure he claimed to reduce management layers, cut overhead costs by more than 30%, and achieved cumulative savings and efficiency improvements of $1.8 billion. He also claimed to have revitalized the nuclear program and instituted a rate freeze that continued for ten years.


1990s to late 2010s

As the electric-utility industry moved toward restructuring and deregulation, TVA began preparing for competition. It cut operating costs by nearly $800 million a year, reduced its workforce by more than half, increased the generating capacity of its plants, and developed a plan to meet the energy needs of the Tennessee Valley through the year 2020. In 1996, Watts Bar Unit 1 began operation. This was the last commercial nuclear reactor in the United States to begin operation in the 20th century. In 2002, TVA began work to restart a previously mothballed
nuclear reactor A nuclear reactor is a device used to initiate and control a fission nuclear chain reaction or nuclear fusion reactions. Nuclear reactors are used at nuclear power plants for electricity generation and in nuclear marine propulsion. Heat fr ...
at Browns Ferry Unit 1, which was completed in May 2007. In 2004, TVA implemented recommendations from the Reservoir Operations Study (ROS) on how it operates the Tennessee River system (the nation's fifth largest). In 2005, the TVA announced its intention to construct an
Advanced Pressurized Water Reactor The Mitsubishi advanced pressurized water reactor (APWR) is a generation III nuclear reactor design developed by Mitsubishi Heavy Industries (MHI) based on pressurized water reactor technology. It features several design enhancements including a ...
at its Bellefonte site in Alabama, filing the necessary applications in November 2007. In 2007 it announced plans to complete the unfinished Unit 2 at Watts Bar, which began commercial operation in October 2016. Watts Bar Unit 2 is the first, and so far only, new nuclear reactor to enter service in the United States in the 21st century. On December 22, 2008, an earthen dike at TVA's
Kingston Fossil Plant Kingston Fossil Plant, commonly known as Kingston Steam Plant, is a 1.4-gigawatt (1,398 megawatt, MW) coal-fired power plant located in Roane County, Tennessee, Roane County, just outside Kingston, Tennessee on the shore of Watts Bar Lake. It is o ...
broke, spreading one billion gallons of wet coal ash across of land and into the tributaries of the Tennessee River. This produced damage from high levels of metal in the river. The TVA Office of the Inspector General's report, ''Inspection 2008-12283-02, Review of the Kingston Fossil Plant Ash Spill Cause Study and Observations About Ash Management,'' concluded that TVA culture had contributed to the spill. In 2009, to gain more access to sustainable, green energy, TVA signed 20-year
power purchase agreement A power purchase agreement (PPA), or electricity power agreement, is a contract between two parties, one which generates electricity (the seller) and one which is looking to purchase electricity (the buyer). The PPA defines all of the commercial te ...
s with Maryland-based CVP Renewable Energy Co. and Chicago-based Invenergy Wind LLC for electricity generated by wind farms. In April 2011, TVA reached an agreement with the Environmental Protection Agency (EPA), four state governments, and three environmental groups to drastically reduce pollution and carbon emissions. Under the terms of the agreement, TVA was required to retire at least 18 of its 59 coal-fired units by the end of 2018, and install scrubbers in several others or convert them to make them cleaner, at a cost of $25 billion, by 2021. As a result, TVA closed several of its coal-fired power plants in the 2010s, converting some to natural gas. These include John Sevier in 2012, Shawnee Unit 10 in 2014, Widows Creek in 2015, Colbert in 2016, Johnsonville and Paradise Units 1 and 2 in 2017, Allen in 2018, and Paradise Unit 3 in 2020.


Recent history

In 2018, TVA opened a new cybersecurity center in its downtown Chattanooga Office Complex. More than 20 Information Technology specialists monitor emails, Twitter feeds and network activity for cybersecurity threats and threats to grid security. Across TVA's digital platform, 2 billion activities occur each day. The center is staffed 24 hours a day to spot any threats to TVA's 16,000 miles of transmission lines. Given continued economic pressure on the coal industry, the TVA board defied President
Donald Trump Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021. Trump graduated from the Wharton School of the University of P ...
and voted in February 2019 to close two aging coal plants, Paradise 3 and Bull Run. TVA chief executive Bill Johnson said the decision was not about coal, per se, but rather "about keeping rates as low as feasible." The TVA stated that decommissioning the two plants would reduce its carbon output by about 4.4% annually. TVA announced in April 2021 plans to completely phase out coal power by 2035. The following month, the TVA board voted to consider replacing almost all of their operating coal facilities with combined-cycle gas plants. Such plants considered for gas plant redevelopment include the Cumberland, Gallatin, Shawanee, and Kingston facilities. In early February 2020, TVA awarded an outside company,
Framatome Framatome () is a French nuclear reactor business. It is owned by Électricité de France (EDF) (75.5%), Mitsubishi Heavy Industries (19.5%), and Assystem (5%). The company first formed in 1958 to license Westinghouse's pressurized water react ...
, several multi-million-dollar contracts for work across the company's reactor fleet. This includes fuel for the
Browns Ferry Nuclear Plant The Browns Ferry Nuclear Plant is located on the Tennessee River near Decatur, Alabama, Decatur and Athens, Alabama, on the north side (right bank) of Wheeler Lake. The site has three General Electric boiling water reactor (BWR) nuclear generatin ...
, fuel handling equipment upgrades across the fleet and
steam generator A Steam generator is a device used to boil water to create steam. More specifically, it may refer to: *Boiler (steam generator), a closed vessel in which water is heated under pressure *Monotube steam generator *Supercritical steam generator or Ben ...
replacements at the
Watts Bar Nuclear Plant The Watts Bar Nuclear Plant is a Tennessee Valley Authority (TVA) nuclear reactor pair used for electric power generation. It is located on a 1,770-acre (7.2 km²) site in Rhea County, Tennessee, near Spring City, between the cities of Cha ...
. Framatome will provide its state-of-the-art ATRIUM 11 fuel for the three
boiling water reactor A boiling water reactor (BWR) is a type of light water nuclear reactor used for the generation of electrical power. It is a design different from a Soviet graphite-moderated RBMK. It is the second most common type of electricity-generating nu ...
s at Browns Ferry with the first use planned for 2023. This contract makes TVA the third U.S. utility to switch to the ATRIUM 11 fuel design. On August 3, 2020, president
Donald Trump Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021. Trump graduated from the Wharton School of the University of P ...
fired the TVA chairman and another board member, saying they were overpaid and had Outsourcing, outsourced 200 high-tech jobs. The move came after U.S. Tech Workers, a nonprofit that works to limit visas given to foreign technology workers, criticized the TVA for laying off its own workers and replacing them with contractors using foreign workers with H-1B visas. Citing its plan to reach net-zero carbon emissions in 2050, the TVA Board voted to approve an advanced approach of nuclear energy technology with an estimated $200 million investment, known as the New Nuclear Program (NNP) in February 2022. The NNP would promote the construction of new nuclear power facilities, particularly small modular reactors, with the first facility being constructed in partnership with Oak Ridge National Laboratory at the Clinch River Breeder Reactor Project, Clinch River Nuclear Site in Oak Ridge, Tennessee, Oak Ridge. On December 23, 2022 TVA had several hours of rolling blackouts due to the Late December 2022 North American winter storm. As many as 24,000 Nashville Electric Service customers were without power, with thousands more from smaller distributors affected as well.


Facilities


Power stations

With a generating capacity of approximately 35 gigawatts (GW), TVA has the sixth highest generation capacity of any utility company in the United States. TVA's power mix as of 2022 is five coal-fired power plants, 29 hydroelectric dams, three nuclear power plant, nuclear plants (with seven operating reactors), nine simple-cycle
natural gas Natural gas (also called fossil gas or simply gas) is a naturally occurring mixture of gaseous hydrocarbons consisting primarily of methane in addition to various smaller amounts of other higher alkanes. Low levels of trace gases like carbo ...
combustion turbine plants, nine combined cycle gas plants, 1 pumped storage hydroelectric plant, 1 wind power, wind energy site, and 15 small solar energy sites. In fiscal year 2020, nuclear generation made up about 41% of TVA's total energy sales, natural gas 26%, coal 14%, hydroelectric 13%, and wind and solar 3%. TVA purchases about 15% of the power it sells from other power producers, which includes power from combined cycle natural gas plants, coal plants, and wind installations, and other renewables. The cost of Purchased Power is part of the "Fuel Cost Adjustment" (FCA) charge that is separate from the TVA Rate.
Watts Bar Nuclear Plant The Watts Bar Nuclear Plant is a Tennessee Valley Authority (TVA) nuclear reactor pair used for electric power generation. It is located on a 1,770-acre (7.2 km²) site in Rhea County, Tennessee, near Spring City, between the cities of Cha ...
produces tritium as a byproduct for the U.S. National Nuclear Security Administration, which requires tritium for nuclear weapons (for "boosted" fission primaries and for fusion secondaries).


Electric transmission

TVA owns and operates its own electric grid, which consists of approximately of lines, one of the largest grids in the United States. This grid is part of the Eastern Interconnection of the North American power transmission grid, and is under the jurisdiction of the SERC Reliability Corporation. Like most North American utilities, TVA uses a maximum transmission voltage of 500 kilovolts (kV), with lines carrying this voltage using Overhead power line#Bundle conductors, bundled conductors with three conductors per phase. The vast majority of TVA's transmission lines carry 161 kV, with the company also operating a number of sub-transmission lines with a voltage of 69 kV.


Recreation

TVA has conveyed approximately of property for recreation and preservation purposes including public parks, public access areas and roadside parks, wildlife refuges, national parks and forests, and other camps and recreation areas, comprising approximately 759 different sites.


Megasites

To qualify for a TVA Megasite certificate the qualifications are at least 1,000 acres, with interstate access, the potential for rail service, environmental impact study, and utility service capable of serving a major manufacturing facility. Seven TVA Megasites have been developed so far with capital investments of over $5 billion. Locations: *Huntsville, Alabama, Huntsville * Chattanooga *Golden Triangle (Mississippi) (2 sites) *Hopkinsville, Kentucky *Blue Oval City, Memphis Regional Megasite *West Kentucky Megasite


Criticism and controversies


Allegations of federal government overreach

TVA was heralded by New Dealers and the New Deal Coalition not only as a successful economic development program for a depressed area but also as a democratic nation-building effort overseas because of its alleged grassroots inclusiveness as articulated by director David E. Lilienthal. However, the TVA was controversial early on, as some believed its creation was an overreach by the federal government. Supporters of TVA note that the agency's management of the Tennessee River system without appropriated federal funding saves federal taxpayers millions of dollars annually. Opponents, such as Dean Russell in ''The TVA Idea,'' in addition to condemning the project as being socialistic, argued that TVA created a "hidden loss" by preventing the creation of "factories and jobs that would have come into existence if the government had allowed the taxpayers to spend their money as they wished." Defenders note that TVA is overwhelmingly popular in Tennessee among conservatives and Liberalism, liberals alike, as Barry Goldwater discovered in 1964, when he proposed selling the agency. Historian Thomas McCraw concludes that Roosevelt "rescued the [power] industry from its own abuses" but "he might have done this much with a great deal less agitation and ill will". New Dealers hoped to build numerous other federal utility corporations around the country but were defeated by lobbyist Wendell_Willkie#TVA_battle, Wendell Willkie and the conservative coalition in Congress. The valley authority model did not replace the limited-purpose water programs of the Bureau of Reclamation and the United States Army Corps of Engineers, Army Corps of Engineers. However, it has been shown that in river policy, the strength of opposing interest groups also mattered. The TVA bill was passed in 1933 because reformers like Norris skillfully coordinated action at potential choke points and weakened the already disorganized opponents among the electric power industry Lobbying, lobbyists. In 1936, however, after regrouping, opposing river lobbyists and conservative coalition congressmen took advantage of the New Dealers' spending mood by expanding the Army Corps' flood control program. They also helped defeat further valley authorities, the most promising of the New Deal water policy reforms. When Democrats after 1945 proclaimed the Tennessee Valley Authority as a model for countries in the developing world to follow, conservative critics charged it was a top-heavy, centralized, technocratic venture that displaced locals and did so in insensitive ways. Thus, when the program was used as the basis for modernization programs in various parts of the third world during the Cold War, such as in the Mekong Delta in Vietnam, its failure brought a backlash of cynicism toward modernization programs that has persisted. Then-movie star Ronald Reagan had moved to television as the host and a frequent performer for ''General Electric Theater'' during 1954. Reagan was later fired by General Electric in 1962 in response to his publicly referring to the TVA (TVA being a major customer for GE turbines) as one of the problems of "big government". Some claim that Reagan was instead fired due to a criminal antitrust investigation involving him and the Screen Actors Guild. However, Reagan was only interviewed; nobody was actually charged with anything in the investigation. In 1963, U.S. Senator and Republican Party (United States), Republican presidential candidate Barry Goldwater was quoted in a ''Saturday Evening Post'' article by Stewart Alsop as saying, "You know, I think we ought to sell TVA." He had called for the sale to private companies of particular parts of the Authority, including its fertilizer production and steam-generation facilities, because "it would be better operated and would be of more benefit for more people if it were part of private industry." Goldwater's quotation was used against him in a TV ad by Doyle Dane Bernbach for President Lyndon Johnson's 1964 campaign, which depicted an auction taking place atop a dam. It was voiced over as follows: "In a ''Saturday Evening Post'' article dated August 31, 1963, Barry Goldwater said, 'You know, I think we ought to sell TVA.' This is a promise: President Johnson will not sell TVA. Vote for him on November 3. The stakes are too high for you to stay home."


Legal challenges

TVA faced multiple constitutional challenges. The United States Supreme Court ruled TVA to be constitutional in ''Ashwander v. Tennessee Valley Authority'' (297 U.S. 288) in 1936. The Court noted that Commerce Clause, regulating commerce among the states includes regulation of streams and that controlling floods is required for keeping streams navigable; it also upheld the constitutionality of the TVA under the War Powers Clause, seeing its activities as a means of assuring the electric supply for the manufacture of munitions in the event of war. The argument before the court was that electricity generation was a by-product of navigation and flood control and therefore could be considered constitutional. The CEO of the Tennessee Electric Power Company (TEPCO), Jo Conn Guild, was vehemently opposed to the creation of TVA, and with the help of attorney Wendell Willkie, challenged the constitutionality of the TVA Act in federal court. The Supreme Court of the United States, U.S. Supreme Court again upheld the TVA Act, however, in its 1939 decision ''Tennessee Electric Power Company v. TVA''. On August 16, 1939, TEPCO was forced to sell its assets, including Hales Bar Dam, Ocoee Dams Ocoee Dam No. 1, 1 and Ocoee Dam No. 2, 2, Blue Ridge Dam and Great Falls Dam (Tennessee), Great Falls Dam to TVA for $78 million (equivalent to $ in ).


Discrimination

In 1981 the TVA Board of Directors broke with previous tradition and took a hard line against white-collar unions during contract negotiations. As a result, a class action suit was filed in 1984 in U.S. court charging the agency with sex discrimination under Civil Rights Act of 1964#Title VII, Title VII of the Civil Rights Act based on the large number of women in one of the pay grades negatively impacted by the new contract. An out-of-court settlement of the lawsuit was reached in 1987, in which TVA agreed to contract modifications and paid the group $5 million but admitted no wrongdoing.


Eminent domain and family removal controversies

TVA has received criticism its entire history for what some have perceived as excessive use of its authority of eminent domain in the United States, eminent domain and an unwillingness to compromise with landowners. All of TVA's hydroelectric projects were made possible through the use of eminent domain, and were controversial due to the more than 125,000 Tennessee Valley residents that were displaced by the agency. Residents who refused to sell their land were often forced to by court orders and lawsuits. Many of these projects also inundated historic Native American sites and early American Revolution-era settlements. Historians have criticized the TVA for forcing residents to sell their property at values less than the Just compensation, fair market value, and indirectly starting a unstable real estate market for farmland. In the most extreme circumstance, displaced residents committed suicide, unable to bear the events of their removal. On some occasions, land that TVA had acquired through eminent domain that was expected to be flooded by reservoirs was not flooded, and was given away to private developers.


In popular culture

The 1960 film ''Wild River (film), Wild River'', directed by Elia Kazan, tells the story about a family forced to relocate from their land, which has been owned by their ancestors for generations, after TVA plans to construct a dam which will flood it. While fictional, the film depicts the real-life experiences of many people forced to give up their land to TVA to make way for hydroelectric projects, and was mostly inspired by the removal of families for the Norris Project. The 1970 James Dickey novel ''Deliverance (novel), Deliverance'', and its 1972 Deliverance, film adaptation focuses on four Atlanta businessmen taking a canoeing trip down a river that is being impounded by an electric utility, nodding to the TVA's early and controversial hydroelectric projects. The 1984 Mark Rydell film ''The River (1984 film), The River'', focuses on a East Tennessee family being confronted by the loss of their ancestral farm from the inundation of a nearby river by an electric utility. The film, shot on farmland near the Holston River in Hawkins County, Tennessee, Hawkins County, utilized flooding practical effects provided by the TVA. In the 2000 film ''O Brother, Where Art Thou?'', the family home of the protagonist, played by George Clooney, is flooded by a reservoir constructed by the TVA. This plays a central role in the pacing of the film and the broader depression-era Mississippi context of the narrative. "Song of the South (song), Song of the South" by country music, country and Southern rock band Alabama (band), Alabama features the lyrics "Papa got a job with the TVA" following the lyrics "Well momma got sick and daddy got down, The county got the farm and they moved to town" expressing the hardships and changes that southerners faced during the post recession era. The TVA and its impact on the region are featured in the Drive-By Truckers' songs "TVA" and "Uncle Frank". In "TVA," the singer reflects on time spent with family members and a girlfriend at Wilson Dam. In "Uncle Frank", the lyrics tell the story of an unnamed hydroelectric dam being built, and the effects on the community that would become flooded upon its completion. On November 19, 2012, Jason Isbell released a solo version of "TVA". The company still has a dominant presence in Northern Alabama, including Isbell's hometown of Muscle Shoals, as an employer and power distributor.


See also

* Title 18 of the Code of Federal Regulations * Appalachian Regional Commission * Helmand and Arghandab Valley Authority, modelled on the TVA * James Bay Energy Corporation, a Crown corporations of Canada, Crown corporation of the Quebec government for developing the James Bay Project for building various Robert-Bourassa generating station, dams on La Grande River, rivers * List of navigation authorities in the United States * Muscle Shoals Bill * Nashville Electric Service * New Deal * New Madrid Seismic Zone * 1811–12 New Madrid earthquakes * Norris, Tennessee * Tennessee Valley Authority Police * '' Tennessee Valley Authority v. Hill''


Notes


References


Bibliography

* * * * * * * * * * * * * * * * * *


External links

*
Tennessee Valley Authority
in the ''Federal Register'' *
WPA Photographs of TVA Archaeological Projects
*

* [https://www.tva.com/about-tva/our-history TVA history] * {{Authority control Tennessee Valley Authority, 1933 establishments in Tennessee 1933 establishments in the United States 73rd United States Congress American companies established in 1933 Appalachia Appalachian culture Appalachian Mountains Companies based in Knoxville, Tennessee Corporations chartered by the United States Congress Economic development organizations in the United States Electric power companies of the United States Energy companies established in 1933 Energy companies of the United States Energy infrastructure in Tennessee Government agencies established in 1933 Hydroelectric power companies of the United States Independent agencies of the United States government New Deal agencies New Deal in Tennessee Nuclear power companies of the United States Public utilities of the United States Tennessee River United States Department of Energy Water management authorities in the United States