Energy Demand Strains the Tennessee Valley Authority
The rising energy needs in the United States are putting pressure on the nation’s power grid. The Tennessee Valley area is experiencing growth that surpasses the national average. More folks are discovering the charm of living in Tennessee Valley, prompting companies to relocate and expand, which inevitably drives up energy demand. It’s crucial to address this need—not just for the Tennessee Valley Authority (TVA) but for the region and the country as a whole.
As the President and CEO of TVA, I take pride in leading an organization that provides nearly all of Tennessee’s electricity and serves the surrounding areas.
Sure, I might be a bit biased, but I really believe TVA gives a significant competitive edge to our seven-state region. Over nearly a century, TVA has established a dam system, one of the nation’s largest nuclear fleets, and one of the biggest coal plants globally. Today, we’re actively shaping the future of energy in America.
If we want jobs, innovation, and economic prosperity, then we definitely need to increase electricity generation. The health of our economy hinges on solid energy and infrastructure. Reliable electricity is essential for attracting job growth, succeeding in technology races, and maintaining national security. In a sense, energy security equates to national security.
TVA stands at a pivotal moment in addressing these challenges. We aim to foster job creation here, which will require an abundance of affordable and dependable energy. To satisfy this growing demand, TVA is undertaking the largest capital project in its history, focusing on energy generation across the valley.
Currently, TVA has plans for a new generation capacity of 6,200 megawatts, with 3,570 megawatts already under construction.
Natural gas remains a vital component of TVA’s energy mix. We have incorporated nearly 1,900 megawatts of new gas units at our sites in Kentucky, Alabama, and Tennessee. This includes a newly completed fast-start gas turbine at the Johnsonville Combustion Turbine Plant, which can now deliver over 1,200 megawatts to the TVA grid during hot summer months. Additional reliable natural gas facilities are also underway in Tennessee and Mississippi.
In East Tennessee, TVA is advocating for nuclear technology, specifically small modular reactors. We have achieved a significant milestone by obtaining the nation’s first early site permit for these reactors. This month, the Nuclear Regulatory Commission accepted applications for the BWRX-300 reactor, marking a substantial step towards deploying this technology for other utilities, ensuring energy security and reliable power for American industries.
Alabama is also exploring new pumped hydro storage facilities, harnessing water as a giant battery by elevating it and releasing it when the TVA system needs extra power.
We’re also focused on maximizing the output from our existing fleet of over 32,000 megawatts. This includes upgrading hydro dams and nuclear facilities, actively updating systems to ensure reliability, and extending the life of coal units. Moreover, considering potential regulatory shifts, we’re looking at ways to collaborate with government to prolong the lifespan of some fossil fuel assets to meet rising demand.
The unique structure of TVA as a public power provider allows for this flexibility. Established by Congress in 1933, TVA operates under the TVA Act, receiving no direct federal funding and having been self-sustaining since 1959. In fact, TVA has repaid its initial federal investment and now contributes to local economies through tax payments for schools, emergency services, and tourism enhancement.
TVA is on solid financial ground with the lowest debt in over three decades, alongside some of the most affordable electricity bills in the country, which bodes well for future growth. Our main financial limitation comes from an outdated debt cap mechanism that hasn’t been updated since 1979.
This isn’t just TVA; our public power model is rooted in collaboration with 153 local power company partners, supplying electricity to homes, businesses, and community leaders. We energize over 60 industries directly and have established strong connections with significant federal facilities like Fort Campbell and Oak Ridge National Laboratory.
My vision for TVA is to nurture growth and prosperity in the region through our unwavering commitment to operational excellence and fiscal responsibility. To achieve this, we must continue expanding energy generation, bolstering our systems and financial stability, and embracing innovation in every aspect of our operations. Our workforce of 10,000 employees is dedicated to serving the community and improving the future for generations to come.
It’s imperative that we stay true to our TVA mission. We must do so by being transparent and educating our communities about the critical need for energy safety and increased power generation. TVA was established to address some of the country’s most pressing issues—we generate electricity, manage river systems and dams, protect the environment, and actively engage in regional economic development. This is our daily work.
