TVA Board Approves Purchase of Renewable and Clean Energy
JOHNSON CITY, Tenn. – The TVA Board today authorized the purchase of as much as 2,000 megawatts of renewable and clean energy by 2011 as part of TVA’s plan to have 50 percent of its power supply from clean and renewable energy sources by 2020.
At a meeting in Johnson City, Tenn., the Board authorized TVA President and CEO Tom Kilgore to approve power purchase agreements and contracts for the renewable and clean energy.
In a report to the Board, Kilgore discussed the latest quarterly fuel cost adjustment that was effective Wednesday, April 1, resulting in a 7-percent decrease in TVA’s average wholesale rates. Combined with a 6-percent decrease Jan. 1, TVA has now rolled back almost 90 percent of the 17-percent fuel cost adjustment that went into effect Oct. 1, 2008. While savings will vary across the Tennessee Valley, the April 1 fuel cost adjustment will mean that residential consumers can expect a decrease on their monthly power bills that ranges from about $4 to $9, depending on how much electricity they use.
TVA may begin entering into contracts as early as June 1 with some of the renewable or clean energy suppliers that provided the most competitive responses to a request for proposals issued in December last year. Renewable energy sources include wind, hydro, solar or biomass.
“It is our goal to reduce TVA’s environmental footprint by increasing the renewable and clean energy resources in our generation mix,” said Kilgore. “Renewable energy and energy efficiency will be part of our clean energy portfolio that has zero or near-zero carbon emissions, which will help reduce the impacts of climate change.”
Kilgore said TVA will negotiate contracts that are “competitive with forecasted electricity market prices over the term of the contract.” Contract terms will be up to 20 years.
TVA received more than 60 responses to its request for proposals to provide clean and renewable energy by June 2011. TVA notified the responders who met the criteria and is continuing discussions with them.
In his report to the Board, Kilgore also said the effects of the drought are continuing into 2009.
For the first three months of this year, rainfall in the eastern part of the Tennessee Valley is below normal and slightly less than rainfall during January-March of 2008. Runoff – the water that reaches streams and reservoirs – is slightly higher so far this year than it was during first three months of 2008, but is still below normal. The tributary reservoirs still need 4 to 8 inches of rain to reach normal summer levels.
TVA is the nation’s largest public power provider and is completely self-financing. TVA provides power to large industries and 158 power distributors that serve approximately 9 million consumers in seven southeastern states. TVA also manages the Tennessee River and its tributaries to provide multiple benefits, including flood damage reduction, navigation, water quality and recreation.
John Moulton, Knoxville, (865) 632-8048
TVA News Bureau, Knoxville, (865) 632-6000