Tennessee’s valley of debt

Tennessee Valley Authority’s power plant financing arrangements should be measured as debt, says the US General Accounting Office, thereby putting further pressure on its politically sensitive and federally restricted debt levels. Paul Lyon reports

As Tennessee Valley Authority (TVA) falls behind the debt-reduction goals itset out in 1997, the US General Accounting Office (GAO) urged Congress to countTVA’s alternative financing method as debt. The GAO made this recommendationin a congressional report released at the end of June.

TVA’s alternative arrangements for refinancing new power plants resultedin long-term obligations similar to debt, but are not counted toward its federallyset $30 million debt cap. Although TVA reduced its

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