30 Nov Time to open TVA’s service territory to electricity competition, think tank says
Pro-markets think tank calls for ending Tennessee Valley Authority’s monopoly. Providing the Tennessee Valley Authority with a monopoly-guaranteed service territory may have made sense in the 1930s, but today it is “an ill-conceived project that’s badly in need of reform,” Marc Hyden with the libertarian-leaning R Street Institute writes in the Memphis Commercial Appeal. Citing profligate spending and multimillion-dollar executive salaries, Hyden laments that “the TVA not only stifles necessary competition, it squanders money.” He calls for the region to adopt a retail competitive model for TVA’s service territory, in which consumers can choose among competing providers of electricity. “The TVA model needs to be reconsidered,” Hyden asserts. “It’s time that state and federal lawmakers address these problems by creating a competitive electricity market and divesting much of the TVA’s assets. Tennesseans will benefit in the end.”
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