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“The
whitewater provided by TVA’s water releases on the Ocoee
and at Rock Island provides Tennessee with some of the best paddling
opportunities in the world. Dagger Canoe supports and encourages
TVA’s efforts to provide increased green power alternatives
and to continue reducing fossil fuel emissions. We also support
their efforts in watershed protection and wildlife conservation.”
—Joe
Pulliam, President, Dagger Canoe, Harriman, Tennessee
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TVA’s success
depends on the success of its customers. To prepare for greater competition
and customer choice, TVA works cooperatively with the distributors of
TVA power and with directly served customers to identify competitive
products and services that will meet their future needs. In an increasingly
competitive marketplace, TVA must be the electric supplier of choice
in price, availability, reliability, quality and service.
Just as the competitive
environment is changing for TVA, it is also changing for TVA’s
customers. TVA is working closely with distributors and directly served
industries through numerous initiatives to help give them a decisive
edge.
Customer Initiatives
- During fiscal
year 2000 TVA began a Wholesale Energy-to-Market test program that
gives distributors the opportunity to gain experience buying power
on the open market and arranging for its delivery to TVA.
- Variable Price
Interruptible (VPI) Power is a new pricing program that offers significant
price savings to those industries that can curtail their operations
when the market price of electricity is highest. Programs like VPI
help TVA ensure that adequate power supplies will be available to
serve all customers in the Valley.
- Through another
pilot pricing program, Firm Fixed Price Buy-Back, TVA can purchase
power back from customers. This helps TVA reduce its exposure to potentially
high market prices while giving the customer the opportunity to sell
back power to TVA.
- To meet the
needs of existing commercial and industrial customers in the Valley,
TVA and distributors work together to provide engineering and technical
expertise in all areas of energy use, including lighting, HVAC, wiring,
industrial processes and load management. In addition to helping customers
use energy more efficiently, these programs are instrumental in retaining
jobs throughout the region.
- TVA and distributors
also have begun focusing attention on regional accounts—customers
with multiple locations throughout the Tennessee Valley. An automated
summary billing pilot will provide one bill to customers with multiple
Valley facilities, which makes billing more convenient and allows
a company to analyze utility costs across its operations.
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“TVA
is a premier trading partner with us—TVA has been a customer
for almost eight years. We provide TVA a variety of items, including
welding supplies, welding consumables and welding machines, as
well as labor and technicians on a subcontractor basis. We provide
these items in a timely fashion in order for TVA to do its job
for all its utility customers—and I’m one of those.
I am part of the supply chain and also part of the customer base.”
—Bill
Crawley, President, Southern Sales & Services Co. Inc., Memphis,
Tennessee
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Agreement on
Restructuring
At the request of congressional members who represent the Tennessee
Valley states, TVA, distributors of TVA power and TVA’s industrial
customers jointly developed legislative language that would ensure equitable
treatment for TVA and its customers under Federal restructuring legislation.
This “TVA Title” was introduced as a stand-alone bill in Congress
by Senators Bill Frist, Fred Thompson and Thad Cochran. The “TVA
Title” would:
- Bring the benefits
of wholesale competition to the Tennessee Valley.
- Continue to
give TVA the right to build generation as needed to keep up with demand.
- Place TVA’s
transmission system under the oversight of the Federal Energy Regulatory
Commission.
- Not affect the
continuance of TVA’s mandate to manage the Tennessee River system,
thereby retaining the benefits to the Valley of TVA’s integrated
operations of the river system.
Stakeholder Initiatives
A 20-member Federal Advisory Committee, the Regional Resource Stewardship
Council, was created to advise TVA on the management of public water
and land resources. Members represent a broad range of interests and
geographically dispersed economic communities. Meetings are open to
the public and serve as a forum for ongoing discussion about issues
of importance to TVA stakeholders.
Green Group
A representation of such environmental organizations as the Sierra Club
and the Tennessee Conservation League, the Green Group began meeting
with TVA executives on a regular basis to exchange information and discuss
issues of mutual importance to TVA and the organizations’ members.
Purchases From
Valley Businesses
In fiscal year 2000 TVA spent about $850 million of its contract expenditures
for materials and services with businesses with locations in the Valley.
This includes more than $35 million to members of TVA’s Diverse
Valley Businesses program and TVA’s Procurement Mentoring program.
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