TVA eyes nuclear power

Ron Owens, TVA (T-G Photo by John I. Carney) [Click to enlarge] [Order this photo]

TVA, which is America's largest public power provider, serves 158 local electric utilities, including Shelbyville Power, Water and Sewerage System and Shelbyville-based Duck River Electric Membership Corp., as well as 60 direct customers, such as federal government installations and major industrial plants. It operates 17,000 miles of transmission lines and has $10 billion in annual revenue.

In recent years, volatile fuel costs have affected TVA and been passed along to its customers. The fuel cost surcharge on electric power reached its peak in October 2008 but has been declining since that time, and last month the surcharge was reduced to a level even lower than when it was first introduced in 2007. Owens said fuel costs are "the reality that we deal with."

Owens addressed proposals to reduce carbon emissions. He said terminology tends to be ideological, with proponents of various bills referring to them as climate change legislation and opponents using the term "cap and trade." Under such legislation, each country would be assigned a maximum level of carbon emissions, but countries which needed more capacity could buy it from those needing less. Owens noted that a bill was approved by a U.S. Senate committee Thursday morning prior to his presentation.

Whatever happens on the legislative front, Owens said TVA is committed to reduce its carbon emissions. In 2008, TVA generated 55 percent of its power from coal, although that figure represents a drought year in which hydroelectric power was less than normal. Owens said 34 percent of TVA's power generation last year came from carbon-neutral sources like hydroelectric and nuclear. By 2020, TVA wants to get half of its power from carbon-neutral sources.

The agency has a variety of programs an initiatives towards that end, including:

* Reductions in the amount of energy used help reduce the need for carbon-based fuels, so TVA is working with its customers on energy efficiency and conservation programs.

* TVA is now purchasing renewable wind energy from windmill farms located in the Dakotas.

* TVA is revitalizing its controversial nuclear program. Unit 2 at Watts Bar in East Tennessee is being reactivated, and the Bellefonte site in Alabama is being evaluated as well. If Bellefonte proves feasible, its never-completed units 1 and 2 could be finished and put into operation, and new units 3 and 4 could be added.

"Our particular ace in the hole is nuclear," said Owens. He said the U.S. has learned from European countries which use standardized plant designs, reducing the cost, and streamlining operations.

* A West Tennessee solar farm is selling energy to TVA, and TVA is now encouraging individuals to put up solar panels and sell their excess power back to TVA through their local utilities. Homeowners can get as much as $1,000 to cover startup costs and can get 12 cents per kilowatt-hour for all of the power they sell back to the utility.

Owens also discussed the TVA Kingston Fossil Plant coal fly ash spill which took place last December in Roane County. He said that more than a third of the 3 million cubic yards of ashes have been removed, and the rest will be gone by spring. He said a 110-car train leaves the site every day filled with ash, which is being taken to Perry County, Ala. The cleanup will cost between $1 billion and $1.2 billion. Owens said the cost will be accounted for over a 15-year period in order to cushion the impact on ratepayers.