Tennessee Valley Authority
+++++The Tennessee Valley Authority (TVA) ++++++
A federally owned corporation in the United States created in May 1933 to provide navigation, flood control, electricity generation, fertilizer manufacturing, and economic development in the Tennessee Valley, a region particularly hard hit by the Great Depression.
The TVA was envisioned not only as an electricity provider, but also as a regional economic development agency that would use federal experts and electricity to rapidly modernize the region's economy and society. The TVA's jurisdiction covers most of Tennessee, parts of Alabama, Mississippi and Kentucky, and small slices of Georgia, North Carolina and Virginia. It is a geopolitical entity with a territory the size of a major state, and with some state powers (such as eminent domain), but unlike a state it has no citizenry or elected officials. It was the first large regional planning agency of the federal government and remains the largest. Under the leadership of David Lilienthal ("Mr. TVA"), the Authority became a model for American efforts to modernize Third World agrarian societies.++++
During the 1920 and the Great Depression years Americans began to support the idea of government ownership of utilities, particularly hydroelectric power facilities. The concept of government-owned generation facilities selling to publicly owned distribution utilities was controversial and remains so today (Hubbard, pp 5-27).
Many believed privately owned power companies were charging too much for power, did not employ fair operating practices, and were subject to abuse by their owners (utility holding companies), at the expense of consumers. During his presidential campaign Roosevelt claimed that private utilities had "selfish purposes" and said, "Never shall the federal government part with its sovereignty or with its control of its power resources while I'm president of the United States." By forming utility holding companies, the private sector controlled 94 percent of generation by 1921, essentially unregulated. (This gave rise to Public Utility Holding Company Act of 1935 (PUHCA)). Many private companies in the Tennessee Valley were bought by the federal government. Others shut down, unable to compete with the TVA. Government regulations were also passed to prevent competition with the TVA.
On the other hand there were conservatives who believed the government should not participate in the electricity generation business, fearing government ownership would lead to the misuse of hydroelectric sites. The TVA was one of the first federal hydropower agencies, and today most of the nation's major hydropower systems are federally managed. Attempts to create TVA-like regional agencies failed, such as a proposed Columbia Valley Authority for the Columbia River.
Many believed privately owned power companies were charging too much for power, did not employ fair operating practices, and were subject to abuse by their owners (utility holding companies), at the expense of consumers. During his presidential campaign Roosevelt claimed that private utilities had "selfish purposes" and said, "Never shall the federal government part with its sovereignty or with its control of its power resources while I'm president of the United States." By forming utility holding companies, the private sector controlled 94 percent of generation by 1921, essentially unregulated. (This gave rise to Public Utility Holding Company Act of 1935 (PUHCA)). Many private companies in the Tennessee Valley were bought by the federal government. Others shut down, unable to compete with the TVA. Government regulations were also passed to prevent competition with the TVA.
On the other hand there were conservatives who believed the government should not participate in the electricity generation business, fearing government ownership would lead to the misuse of hydroelectric sites. The TVA was one of the first federal hydropower agencies, and today most of the nation's major hydropower systems are federally managed. Attempts to create TVA-like regional agencies failed, such as a proposed Columbia Valley Authority for the Columbia River.
