Sunday, December 11, 2011
Can someone please help me with FDRs New Deal agencies?
The most controversial activity of the TVA is the production and sale of electric power, which has been resisted by privately owned power companies. The TVA contracts with municipalities and cooperatives to supply wholesale power for distribution and has joined with them in purchasing the facilities of privately owned electric-utility companies in the region. These purchases have established an integrated power service area in which the TVA is the sole supplier of power. The TVA power system, which includes more than 50 dams, as well as coal-fired thermal plants and operable nuclear plants, possesses a huge generating capacity. Power is sold in bulk, about half to federal agencies and half to large industries and locally owned municipal and cooperative distribution systems; and electric rates in the Tennessee River valley are among the lowest in the nation. Because of critics' claims that the low rates are made possible by the TVA's tax exemption and lack of obligation to show a profit on its operations, a schedule of payments was worked out by which the TVA would refund to the national treasury over a period of years all federal electric-power investment in the valley. The TVA nuclear power plant program was seriously curtailed in the 1980s because of quality control problems and safety deficiencies in several plants already completed or under construction.
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