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Notes on Financial Statements

10. Nonpower programs

Certain TVA activities formerly referred to as “nonpower” programs provide various public services, including managing navigable river channels, providing flood control and overseeing recreation facilities. TVA’s responsibilities include general stewardship of land, water and wildlife resources.

Funding for the nonpower programs had historically been primarily provided through Federal appropriations. Certain nonpower program activities have also been funded by user fees and outside services revenues. In 1999 TVA received total Federal appropriations of approximately $50 million, of which $43 million was for stewardship activities and $7 million was for TVA’s Land Between the Lakes National Recreation Area (LBL). During 1998 TVA received total Federal appropriations of approximately $70 million, of which $63 million was for stewardship activities, including $3 million for the environmental clean-up work at the Muscle Shoals, Ala., reservation, and
$7 million was for LBL. As discussed below, TVA received no Federal appropriations in 2000.

In October 1997, Congress passed legislation that directed TVA to fund essential stewardship activities related to its management of the Tennessee River system and TVA properties with power funds in the event that there were insufficient appropriations or other available funds to pay for such activities in any year. Congress did not provide any appropriations to TVA to fund such activities in 2000. Consequently, during 2000, TVA paid $72 million for essential stewardship activities primarily with power revenues, with the remainder funded with user fees, other forms of nonpower revenues and nonpower fund balances unused in prior years. In addition, administrative jurisdiction over LBL was transferred to the Secretary of Agriculture effective October 1, 1999. TVA is responsible for certain transition costs associated with the transfer of LBL, estimated to be approximately $7 million at September 30, 2000. TVA retains responsibility for management of the remaining nonpower assets and settlement of nonpower obligations.

At September 30, 2000, TVA had transferred $56 million of property and equipment to the U.S. Forest Service. After this transfer the completed plant of the nonpower programs consists of multipurpose dams and other plant. At September 30, 2000, the net completed plant balances for multipurpose dams and other plant were $683 million and $57 million, respectively. At September 30, 1999, the net completed plant balances for multipurpose dams and other plant were $692 million and $112 million, respectively.

 

 

 

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