TVA will go bust, say academics

The Tennessee Valley Authority (TVA) is facing insolvency, according to a studyby two US academics. The study, by the same professors who warned a decade agoabout the pending bond failures at the Washington Public Power Supply System,said TVA, the largest wholesale supplier of electricity in the US, could be onthe same course when competition arrives in the region.

Authority officials and rating agency Standard & Poor’s have dismissedsuch predictions (see Energy Risk, December 2003, p.12)

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