TVA has Alabama legislature chasing its tail
Idiocy has been described as doing the same thing over and over expecting a different outcome.
But maybe the Alabama legislature is just being sly like a fox. I still call what they have been doing with TVA’s payments idiocy, “bribes” in lieu of taxes from the Tennessee Valley Authority.
Looking at it one way, every year TVA provides about $450 million of free handout money (5 percent of gross sales) throughout its far-flung, 80,000 square-mile territory. And there is a scramble for some of it wherever it shows up.
Several years ago, dry Geneva County, at the bottom of Alabama on the Florida line, doled out some TVA money to the little town of Eunola, population 182 at last census. The problem was that the town of Eunola had not had an election in 40 years. Later, Alabama’s attorney general ruled it too small for re-incorporation.
There is no indication that TVA is concerned how their money is used once they give it away. I could not find out what happened to Eunola’s largess.
Idiocy has been described as doing the same thing over and over expecting a different outcome.
But maybe the Alabama legislature is just being sly like a fox. I still call what they have been doing with TVA’s payments idiocy, “bribes” in lieu of taxes from the Tennessee Valley Authority.
Looking at it one way, every year TVA provides about $450 million of free handout money (5 percent of gross sales) throughout its far-flung, 80,000 square-mile territory. And there is a scramble for some of it wherever it shows up.
Several years ago, dry Geneva County, at the bottom of Alabama on the Florida line, doled out some TVA money to the little town of Eunola, population 182 at last census. The problem was that the town of Eunola had not had an election in 40 years. Later, Alabama’s attorney general ruled it too small for re-incorporation.
There is no indication that TVA is concerned how their money is used once they give it away. I could not find out what happened to Eunola’s largess.
North Alabama feels short-changed
Now, North Alabama legislators believe their part of the state is being short-changed because a number of dry counties in Alabama outside TVA’s territory receive TVA payments. Some of those dry counties depend on the TVA handout to balance their budgets. Crunch time for them if a new Alabama law cuts them off next year.
Today it is conservation, conservation, conservation
The craziness of TVA’s whole giveaway scheme is compounded by an entirely new direction for the TVA – conservation, cutting back on demand for electricity. Presently, TVA takes 5 percent of gross electricity sales and gives it “back” in what they call “payments in lieu of taxes”.
But TVA suddenly has changed directions and wants their 8.8 million customers to use less electricity.
The other part is that not a single TVA customer, those who produce the rebate amounts, ever directly get a part of that rebate. These slush funds go to state and local governments who decide without further input from the ones who enabled the rebate just how to spend this free money. The money is free because nothing has to be done to qualify for it. It’s just there. Obviously, you do not have to live in TVA’s territory to qualify.
Change to conservation means changes in rebate system
First, TVA must change its method of a 5 percent usage payment to state and local governments to a 5 percent incentive payment, or a combination of the two, to the customers who conserve the most electricity.
The incentive would go directly to customers who cut back on electricity usage during peak demand for power, usually in the summer and some in the winter. Those who conserve the most electricity would receive a direct payment or a credit to their monthly electricity bills.
If this method combines the two kinds of rebates and any portion of the 5 percent incentive rebate to customers is remaining for each month, that money would be distributed in the usual manner to state and local communities as in the past, a “payment in lieu of taxes”.
Because this scheme would operate primarily during peak demand periods, the TVA would not have to purchase as much power from outside suppliers said to have cost a billion dollars last year.
One of the main features of this plan is that reward follows conservation, not reward following excessive use. TVA has stated that it would not increase electricity rates to induce less use of it.
Another advantage is that TVA already budgets for these payments and borrowing may not be required.
Reasons plan will not work
There are at least two reasons this plan would never make it through TVA management. First, it would show the nimbleness and innovation of management to meet immediate economic circumstances, traits never thus far exhibited by TVA; and secondly, it makes too much sense.
Ernest Norsworthy
emnorsworthy@earthlink.net
http://norsworthyopinion.com
http://norsworthyattheshoals.blogspot.com
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