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Show Today the TVA is virtually the sole producer of electric power for general distribution in an area of approximately 80,000 square miles, twice the size of the valley. This power service area covers most of the Tennessee Basin, major portions of the Cumberland Basin, and parts of the other adjacent watersheds. Some areas in the eastern part of the Tennessee Basin are still served by the facilities of privately owned utilities, including those of the Carolina Power & Light Co., the Appalachian Elec- tric Power Co., and subsidiaries of the Aluminum Co. of America. By virtue of its monopoly in power supply and as a result of its long-term con- tracts with local distributors, the Authority has acquired a status analogous to that of a public utility in this area. The Authority's service area is now substantially stabilized. From, a legal standpoint, TVA inter- prets its act as authorizing it to market electric power only at points which are within transmission distance of one or more of its hydroelectric plants on the Tennessee River or its tributaries; in addi- tion, it takes the position that this area cannot be enlarged to include other points which may be within transmission distance either from one or more TVA steam plants or from projects operated by other Government agencies. Practical considera- tions^-particularly the rapid load growth and the present and potential tight power supply situation in its existing area-limit the extent of its service area still further. During recent years, TVA has declined a number of requests for service, even in the case of municipal bodies, in areas which it could legally have served had surplus TVA power been available and had TVA deemed conclusion of new long-term contracts advisable. Except for meeting a few long-standing commitments, TVA has no plans for expansion of its power service area. Multiple-purpose projects constructed in the watershed by the Tennessee Valley Authority pro- vide a high degree of development of the basin's water resources. For the most part the major objectives of navigation and flood control21 have been accomplished. The total fall of the main river has been used and the major reservoir sites in the tributaries have been occupied. Hydroelectric power produced at these projects has been used to supply area load demands. From 1940 to 1950 the rate of load growth in the area was very rapid, necessitating acceleration in 21 Chattanooga and some other specific areas are excepted. project construction. This growth in power load, illustrated by the increase in peak demand from less than 1 million kilowatts in 1940 to over 3 million kilowatts in 1950, has been caused by the greater use of electricity by all classes of users, and by in- creased industrialization, including large defense installations. The load growth during the next few years will be at an even faster rate. The present power system of the Tennessee Val- ley Authority has an installed generating capacity of approximately 3 million kilowatts, of which some 15 percent is in steam-electric plants and the re- mainder in hydroelectric developments. The sys- tem depends primarily upon water for the genera- tion of energy, with steam plants to supplement the hydroelectric generation during periods of low flow. Capacity additions scheduled for completion by the end of 1952 include approximately 300,000 kilowatts in hydroelectric units in the Tennessee Basin, 400,000 kilowatts in hydroelectric plants being constructed by the Corps of Engineers in the Cumberland Basin, and 1,125,000 kilowatts in new steam-electric plants being built by the Authority. Completion of these units will bring the total in- stalled capacity of the system to ;more than 4.8 million kilowatts, of which about 32 percent will be in steam-electric plants. After completing the scheduled additions, the hydroelectric power potential remaining undevel- oped in the Tennessee and Cumberland Basins will be over 1 million kilowatts capacity. This power, in general, would be produced at small plants lo- cated in the headwater areas. The only other hy- droelectric power sources of importance that could be used in the Authority's service area are those that might be developed in connection with possible modification of the Tennessee-Tombigbee Waterway.22 It appears, therefore, that in the fu- ture the power supply in the Tennessee Valley area must depend increasingly on the construction of steam power facilities. Conclusions The Federal Government has become the domi- nant supplier of electricity in the area, to the point where the region has no practical alternative source of power to meet its requirements. Therefore, the Federal Government has the responsibility to pro- vide the required facilities, including both hydro- electric and steam plants. Municipalities, States, 22 See problem A-l. 767 |