Tennessee Valley Authority: Option Purchase Agreements Free Essay, Term Paper and Book Report
TVA Problems and Uncertainties:
In 1994, Tennessee Valley Authority (TVA) "was considering a new proposal for meeting the uncertain energy demands of... the 21st century" (Fellow 1). TVA being "the largest public power utility in the United States" (Fellow 1) was subject to oversight by Congress, which in 1992 required TVA to "complete a comprehensive Integrated Resource Planning (IRP) study" (Fellow 3). The purpose of this IRP study was to assess TVA's ability to "carry out its responsibilities for ensuring ample supply of electric power for the region [it served] at the lowest feasible cost" (Fellow 3). Two key findings from the study revealed that the Electric Power Industry going into the 21st century faced greater uncertainty than it did in the past, of which TVA was not immune to, and Secondly, TVA's "single most important objective [was] competitiveness" (Fellow 3).
TVA was faced with finding creative options within the constraints of providing power to meet customer demand at the lowest possible price, and within Cong......
Word Count: 2244
Page Count: 8.9 (250 words a page / double spaced)
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