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<classification authority="sudocs">GA 1.13:RCED-99-154</classification>
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 <subject>Environmental policies</subject>
 <subject>Hydroelectric powerplants</subject>
 <subject>Electric power generation</subject>
 <subject>Cost effectiveness analysis</subject>
 <subject>Flood control management</subject>
 <subject>Water supply management</subject>
 <subject>Hydroelectric energy</subject>
 <subject>Inland waterways</subject>
 <identifier>Chattanooga (TN)</identifier>
 <identifier>Knoxville (TN)</identifier>
 <identifier>Paducah (KY)</identifier>
 <identifier>Tennessee River (TN)</identifier>
 <identifier>TVA Flood Risk Reduction Program</identifier>
 <identifier>TVA Alternate Operations Evaluation Program</identifier>
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 <title>Tennessee Valley Authority: Future Study of Lake Levels</title>
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<abstract>Pursuant to a congressional request, GAO reviewed the Tennessee Valley
Authority&apos;s (TVA) management of its multipurpose tributary projects,
focusing on: (1) the purposes served by TVA&apos;s multipurpose tributary
projects and how TVA operates these projects within its integrated
system; (2) the operational changes TVA made to these projects as a
result of its December 1990 review of its project operations and the
major factors influencing these changes; (3) the actions TVA has taken
since the 1990 review to address requests for changes in the way it
operates these projects; and (4) TVA&apos;s plans for any future changes in
the way it operates these projects. GAO is also providing information on
a selected update by TVA of its analysis performed in the 1990 review.

GAO noted that: (1) the operation of the multipurpose tributary projects
serves several purposes--primarily navigation and flood control, and to
the extent consistent with these purposes, hydroelectric power
production; (2) these three operating priorities are contained in the
TVA Act of 1933; (3) TVA can permit operation of the projects for other
purposes; (4) in operating its integrated system, TVA often finds that
the multiple purposes served by the projects can conflict or compete
with each other; (5) TVA attempts to balance the various purposes served
to provide the greatest public benefits from the waters of the Tennessee
River and its tributaries while adhering to the operating priorities;
(6) a key change resulting from its December 1990 review of project
operations was TVA&apos;s delaying the annual lake drawdown at the
multipurpose tributary projects from Memorial Day to August 1; (7) the
major factor influencing this change was that, of the seven alternatives
examined in the 1990 review, this alternative had the least impact on
TVA&apos;s systemwide cost of supplying electric power; (8) all of the
alternatives reduced TVA&apos;s ability to generate hydroelectric power
during periods of peak power demand; (9) TVA estimated that the selected
alternative would require replacing some hydroelectric power with power
from more expensive generation sources; (10) since the 1990 review,
little has changed in how TVA operates its multipurpose tributary
projects; (11) because it had been receiving an increasing number of
requests to analyze changes in the lake levels for individual lakes, TVA
determined that a piecemeal approach raised questions of fairness in how
each lake would be treated within TVA&apos;s system; (12) therefore, in March
1997, TVA established a 4-year moratorium on making any changes in lake
levels; (13) TVA has recognized that any future changes to its policies
impacting lake levels require further study; (14) in July 1998, an
internal TVA task force report recommended that TVA continue its
moratorium and start reevaluating policies impacting lake levels within
the next 2 to 4 years; (15) the task force also noted the complexities
involved in carrying out such a study and identified several areas
requiring further attention; and (16) among these are a proactive
communication plan with the public and better evaluation methodologies
for costs and benefits.</abstract>
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<identifier type="preferred citation">GAO/RCED-99-154</identifier>
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<note>Chapter Report</note>
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<subject>
 <topic>Environmental policies</topic>
 <topic>Hydroelectric powerplants</topic>
 <topic>Electric power generation</topic>
 <topic>Cost effectiveness analysis</topic>
 <topic>Flood control management</topic>
 <topic>Water supply management</topic>
 <topic>Hydroelectric energy</topic>
 <topic>Inland waterways</topic>
 <topic>Chattanooga (TN)</topic>
 <topic>Knoxville (TN)</topic>
 <topic>Paducah (KY)</topic>
 <topic>Tennessee River (TN)</topic>
 <topic>TVA Flood Risk Reduction Program</topic>
 <topic>TVA Alternate Operations Evaluation Program</topic>
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