Administration Proposes To Hike Tennessee Electricity Rates

April 19, 2005, I am disturbed by a White House proposal that plans to hike the rates charged for electricity generated at federally constructed dams here in Tennessee. I will fight any attempts by the federal government to artificially inflate electricity rates for Tennesseans, or any efforts in Congress to sell our public lakes and recreation areas.

The Tennessee Valley Authority estimates it would annually have to pay an additional $87 million for the electricity it gets from these dams if the administration's proposal became law. About 60 percent of TVA power is sold in Tennessee, which means our families, small businesses and industries could be charged an additional $52 million for the same electricity they purchase today.

As Congress begins debate on a comprehensive energy bill, I want to ensure that there is no move to include the president's rate-hike proposal in this legislation. I have written the Secretary of Energy to voice my strong opposition to the administration's plan, which is just another backdoor attempt to privatize public resources.

Forcing the Southeastern Power Administration, charged with marketing power from Tennessee's federally built dams, to raise the price of hydroelectricity sold to TVA and other utilities in the Southeast would harm our region's economy. Currently SEPA sells power to publicly or cooperatively owned utilities at rates based on its costs. SEPA shouldn't be forced to choose between maximizing electricity profits and fulfilling its public mission to the ratepayers of Tennessee.

I have been fighting efforts in Congress to sell SEPA assets since 1995. SEPA lakes in Middle Tennessee include J. Percy Priest, Old Hickory, Center Hill and Dale Hollow. Those dams and reservoirs provide flood control, irrigation, electricity and navigation routes for commerce. And they provide a source of recreation that enhances the quality of life for millions in the Southeast.

Private interests in the utility industry are driving the administration's proposal. Tennessee ratepayers, as well as other ratepayers in the Southeast, have already paid for the dams and lakes that provide electricity and recreation to the region. Forcing us to pay more than what it actually costs to produce power at these facilities would be an unfair burden, devastating economic development in the state and adding drastically to the state's unemployment rolls.

I will be monitoring closely the upcoming energy debate. Any attempt in Washington to unfairly increase electricity rates for Tennesseans will meet fierce resistance from me.