Administration looking at possible divestiture of TVA that continues public power model, Johnson says
Originally published May 8, 2014
The Office of Management and Budget is exploring options for possible divestiture of the Tennessee Valley Authority in a way that would preserve public ownership of the utility, TVA President and CEO Bill Johnson said May 6. "I think their real interest now is exploring some sort of ownership -- state, local or regional -- that continues the public power model but distances it from the federal government on their belief on maybe the federal government shouldn't be engaged in activities like this anymore," Johnson said during a conference call on TVA’s second quarter results.
In collaboration with an OMB financial expert, TVA has prepared a strategic review that explored numerous options for a different form of ownership, Johnson said. Asked if the options were financially viable, Johnson said that "depends on your view of financially viable and a couple other things. It’s a complicated and long analysis."
During the course of the strategic review, OMB’s focus changed from privatization of TVA to continuation of a public power model, he said.
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