SACE urges KUB to chorus from signing the unhealthy-deal contract the Tennessee Valley Authority (TVA) has strongly been encouraging native power firms to signal.
Stephen Smith | October 22, 2019
Last Thursday, I attended the Knoxville Utility Board’s (KUB) month-to-month Board assembly the place I inspired KUB to chorus from signing the Tennessee Valley Authority’s (TVA) new lengthy-time period contracts. The utility has been strongly encouraging native power firms (LPC) to enter 20-year all requirement contracts, over the present 5-year contracts. While the lengthy-time period contract TVA is presenting to LPC’s include a number of incentives, after scrutinizing the ailing-outlined and non-versatile contract, it’s clear to us on the Southern Alliance for Clean Energy (SACE) that what TVA is laying out on the desk isn’t definitely worth the negatives related to signing it.
So far 131 different utilities throughout TVA’s service territory have signed the brand new contract. Notably a few of TVA’s largest prospects, together with Memphis Light, Gas and Water have not signed. It’s unclear to us at SACE how a lot KUB’s Board will likely be concerned within the determination to maneuver ahead with them. We have unsuccessfully reached out to KUB’s CEO Gabe Bolas on the difficulty. Regardless, we urge KUB to not prematurely signal the contract and retain power and suppleness for the purchasers they serve to realize Knoxville’s newly established carbon goals.