On Thursday, October 21, the Federal Energy Regulatory Commission (FERC) voted in a 3-1 decision to decline a petition for unbundled transmission service filed by three Tennessee Valley local power companies under the Federal Power Act. Commissioner Allison Clements dissented.
TVPPA supports the Commission’s decision, as it makes clear that the path forward will be defined by the TVA board and staff working in earnest to negotiate with petitioners – TVPPA members Athens UB, Gibson EMC and Volunteer EC – on contract provisions that would satisfy both parties and serve the long-term needs of Tennessee Valley communities and consumers.
In a statement released on Thursday, TVPPA President and CEO Doug Peters said, “The relationship between TVA and its distributor customers is unlike any other in the nation, and it has served to build the economy and fuel life in the Tennessee Valley. TVPPA believes in the public power model defined by the Tennessee Valley Authority Act and supports maintaining the model that has served the region’s interests for more than 80 years.
At the same time, we support our members’ local decisions, as each is governed by leaders from the communities in which they serve. We encourage TVA and the petitioners to begin anew in their effort to reach a point of consensus that would enable those local leaders to commit to a long-term contract with TVA.”
FERC Chairman Rich Glick, recognizing that Congress is the authority over the TVA “fence,” was clear in his position that legislators should remove it and allow markets to develop in the region.
Our association believes in the power supply planning and delivery model in the Tennessee Valley and hopes an agreement will be reached that supports the long-standing relationships between TVA and its wholesale customers.
TVPPA will continue to work with both parties toward that end because we believe that through their continued collaboration to achieve common goals, our members and TVA can build a more powerful future for themselves as well as for the communities and consumers they serve.