For decades, North Alabama's been getting a pretty sweet deal on electricity rates, courtesy of the Tennessee Valley Authority. But President Obama's budget proposal released yesterday may change that. The budget suggests that debt concerns make make it necessary to sell TVA to private businesses.
The privatizing of TVA "can help put the nation on a sustainable fiscal path," according to Obama's budget. The passage addressing TVA closes by saying his administration intends to review options for TVA, "including the possible divestiture of TVA, in part or as a whole."
You have to wonder if this is an actual proposal, or a shot across the bow of the Republican deficit hawks who hate all federal expending - that doesn't directly affect their districts.
Take AL-05 Congressman Mo Brooks (please!), for example. Fresh off his assertion that President Obama is a "Socialist" who is "in denial" about the nation's debt, Brooks quickly changed his tune yesterday and defended this New Deal legacy program:
Brooks said that assertion is "unsupportable and inexplicable," pointing out that TVA is self-sustaining and receives no tax subsidies. Brooks also questioned if TVA's assets could be sold for a profit.
But he's willing to "consider it," only if "...President can make that case to Tennessee Valley citizens that doing so will lower the costs of electricity to TVA consumers and is in America's interests."
Um.... isn't it written somewhere in the Conservative Bible that private industry is always more efficient than the government? We hear that talking point all the time even though it's patently false: private businesses have the resources to stack the deck in their favor via lobbying for tax breaks and even getting guaranteed profits.
Alabama Power executives no doubt already have their accountants busily calculating the financial windfall should the company be allowed to snap up even a portion of TVA's assets and customer base. Unlike private utilities, TVA isn't looking to turn a profit: compare that to Alabama Power's guarantees profit margin courtesy of the so-called Alabama "Public Service" Commission.
Hold on to your wallets, campers! This could be costly.