[Congressional Record Volume 144, Number 81 (Friday, June 19, 1998)]
[Senate]
[Page S6696]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               REGULATING THE TENNESSEE VALLEY AUTHORITY

  Mr. FORD. Mr. President, I rise to comment on the concerns I have 
about recent proposals to dramatically change the regulatory structure 
of the Tennessee Valley Authority. Recently, legislation was introduced 
to make dramatic changes in the regulatory structure of TVA, starting 
with the granting of regulatory authority to the Federal Energy 
Regulatory Commission.
  TVA has had remarkably stable rates over the last decade, with only 
one significant rate increase during this time period. I agreed that 
TVA has not been run perfectly through the years. However, to consider 
a substantial regulatory overhaul for this agency at a time when 
comprehensive electric industry deregulation is right around the corner 
appears to me to be premature and unwise. Legislation to impose 
additional regulatory controls at a time when the Congress is beginning 
to seriously consider significantly less regulation for the rest of the 
industry seems contradictory to me.
  In addition, I have concerns about the impact of such a proposal on 
the coal industry in my state. I would strongly oppose efforts to 
impose a new federal regulatory layer that may limit the flexibility of 
TVA to purchase Kentucky coal. TVA buys over 26 million tons of 
Kentucky coal per year, which adds $600 million to the economy of my 
State. TVA is responsible for more than 20 percent of all coal 
purchases in Kentucky.
  I have heard from many Kentuckians who are concerned about this new 
regulatory proposal. I wish to place my colleagues on notice that I 
will strongly oppose any such regulatory scheme, and will oppose other 
overhaul efforts outside of the context of deregulation legislation. It 
makes no sense to consider two major regulatory changes in such a short 
period of time.

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