NASHVILLE, Tenn. (WTVF) — For nearly a century, the Tennessee Valley Authority (TVA) has provided electricity to power homes and businesses across the region.
Now, some industry insiders are sounding the alarm about the future of this federal energy supplier.
At a Tennessee Valley Trades and Labor Conference consisting of TVA employees and trade unions on Tuesday, talk of potential privatization permeated the halls.
"People in Washington, and other places around the country, are interested in disrupting what we have here for their own gain, and we need to be paying attention to that," said Steve Farner, Vice President and Regional Manager for the Southern States Region of the Labor International Union of North America.
The TVA was created in 1933 as part of President Roosevelt's New Deal. Its primary goals were to help the Tennessee River Valley with desperately needed flood control and provide low-cost electricity.
The TVA is a unique federal agency. While owned by the federal government, it doesn't use federal tax dollars; instead, it operates on money made from selling electricity. However, it does have unique federal powers, including the controversial ability to use eminent domain.
A recent example of that power was a TVA effort to build a new natural gas and battery storage plant in Cheatham County, which drew opposition from country music singer John Rich, who has deep ties to the area.
"You are going to back up out of this county, one way or another, at some point. Either do it on your own, or we eventually take it to the President of the United States, and I'm pretty sure he doesn't like you as it is," Rich said in a video posted on social media.
Not long after recording this video, Rich claimed he called President Trump and convinced him to put pressure on the TVA Board of Directors. Subsequently, TVA abandoned the Cheatham County plans.
That move, along with the President firing several members of the board this year, sparked new concerns that he may try to privatize the energy giant. "A disruption in the TVA that could lead to privatization or breaking up of TVA and selling of its assets," said Farner.
Farner emphasized that TVA keeps electricity costs low for the region. "They're lower than 80% of the rest of the country. That drives our economic engine here that makes opportunity for new jobs, new industry, all that," said Farner.
Looking at average electricity costs for residential homes compiled by the federal government confirms this claim. While states like Missouri, Arkansas, and Louisiana have lower costs per kilowatt hour, many other states not powered by TVA have much higher rates.
"The price of electricity could escalate, you could lose jobs, you could have disruption and unpredictability in the grid," said Farner. "I think people need to be paying attention to this issue about TVA."
It is believed that fully privatizing TVA would require a vote from Congress. However, it remains unclear if a new TVA board, appointed by President Trump, could sell off some assets without legislative approval.
Are you concerned about the future of TVA? Is privatization the way to go? Watch the video for more insights, and share your thoughts with me at chris.davis@NewsChannel5.com.
Music City is built on the talents of songwriters - and I can guarantee you've never seen a better collaboration than this! You'll be cheering and crying... and glad you took time to watch this story. Enjoy!
- Carrie Sharp
