Scott Klug: “I want to make two points. First, on the argument of the gentleman from Alabama that somehow this idea of privatizing…”

“I want to make two points. First, on the argument of the gentleman from Alabama that somehow this idea of privatizing the TVA is absolute anathema and will mean the end of the world. May I again refer to the same GAO report on the financial viability of the Tennessee Valley Authority: TVA's links to the Federal Government-- these links that do not exist which do exist, says the GAO-- and its high debt limits have enabled it to borrow the billions of dollars needed for its nuclear construction program. TVA's electricity rates and power production decisions are not subject to the same oversight that other utilities routinely face. Although protected from competition by legislation and its customers contracts in the short run, TVA will have to compete with other utilities in the long run. Because of heavy debt burden and resultant high financing costs, TVA lacks the flexibility to successfully compete in this environment. May I suggest that if we do not figure a way to privatize the Tennessee Valley Authority, your taxpayers in Alabama and mine in Wisconsin will at some point have to eat $28 billion in TVA debt. I am not making that up. That is the conclusion of the General Accounting Office.”