5/30/2013

Something that I agree with the Obama administration on: Privatizing the Tennessee Valley Authority

Obama might be doing this for a weak reason, solely to reduce Federal debt and not for the increased efficiencies produced by private ownership, at least he is doing it. From Fox News:
. . . Created in 1933 by President Roosevelt, the TVA brought electricity to Appalachia, with the goal that wiring up Tennessee, parts of North Carolina, Alabama and Mississippi would help bring prosperity to an impoverished region.
But in his new budget, President Obama ordered a strategic review of the TVA with an eye toward selling it to private interests.
Though the TVA operates solely with income from ratepayers, it has a debt of some $25 billion. While that debt is not backed by the federal government, it is included in the overall federal debt numbers.
By selling the TVA, Obama can give the appearance of immediately erasing $25 billion in red ink from the books.
Or can he?
Some are now questioning whether shedding the TVA would yield the kind of payoff Obama anticipates, while Republican lawmakers in the region remain uncharacteristically protective of this government-sponsored company. And ratepayers worry that if the TVA changes hands, their power costs could go up. . . .

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