Congressman Steve Cohen, ardent TVA critic, files bill to eliminate its monopoly

U.S. Rep. Steve Cohen said Friday he's introducing legislation that would lower the Tennessee Valley Authority's "fence" and eliminate its monopoly power in the Southeast.

The bill, which would amend the Federal Power Act and the TVA Act, would remove TVA's exemption from outside competition and its inability to compete for customers outside its footprint.

“TVA’s outdated service model is from the 1950s and badly needs reform. Ratepayers deserve the benefits – lower costs and cleaner energy – that a competitive electricity market will provide. TVA’s ratepayers deserve to have access to alternative power supplies on a competitive and non-discriminatory basis. This measure will give greater access to clean energy and affordable energy bills in the TVA region," Cohen said in a statement.

Cohen, D-Tennessee, has long been a TVA critic. He's criticized the federal power provider's handling of public records regarding employee salaries; renewable energy plans; its disposal of coal ash from the retired Allen Fossil Plant and said his hometown of Memphis should leave TVA and find power elsewhere.

Cohen also has strong ties to a businessman who has sought to sell power to TVA customers for years.

The legislative timeline for the bill is not quite clear. It could move in this session of Congress and will be referred to the Transportation and Infrastructure Committee — on which Cohen sits — and the Energy and Commerce Committee.

Cohen's bill comes as Memphis, Light, Gas and Water, the city-of-Memphis-owned utility, is working towards signing a perpetual, long-term agreement with TVA after years of looking at leaving and supplying its own power through new local power plants and power purchased elsewhere.

MLGW signing such a long-term deal would mean TVA has locked up most of its power customers for decades. That's sparked the ire of environmental groups and renewable energy advocates, who have argued that such deals are bad for the environment and limit how ratepayers can hold the federal agency accountable for climate goals.

TVA issued a statement that said, in part, "We appreciate Congressman Cohen’s continued interest in TVA and the Tennessee Valley Public Power model . . . For nearly 90 years, TVA’s Congressionally mandated mission has been to serve the public good and improve the lives of the 10 million people we and our public power partners serve every day. The facts show we are fulfilling that mission today and are committed to evolving with the needs of the region to continue to serve future generations."

FERC has called for Congress to lower TVA fence

The TVA fence essentially gives it a monopoly in the Southeast — almost all of Tennessee and parts of six other states. It controls the transmission lines that connect to outside energy grids.

Any local power company that wants to end its contract with TVA must build its own transmission lines, the Federal Energy Regulatory Commission ruled last year. That ruling came after a handful of local power companies had asked FERC to force TVA to wheel power through to local power companies that have left through its transmission lines.

The requirement raises the barrier to leaving TVA because it adds the cost of building transmission lines and the time that it takes to secure rights-of-way.

When FERC ruled last October, Chairman Richard Glick called the fence an "anachronism" and noted that it prohibited competition within TVA's borders. He said that it would take an act of Congress to amend the TVA Act and said, "...The time has come for Congress to bring down the TVA fence."

Cohen's bill would do just that.

TVA suitor one of Cohen's close friends and frequent donors

Cohen's call for increased competition within the TVA footprint follows his involvement in Franklin Haney's effort to lead the MLGW out of TVA.

When Haney and his representatives first started pitching MLGW executives on purchasing power from the Bellefonte Nuclear Plant in Hollywood, Alabama, Cohen's private email address appeared CC'ed on some of those email pitches, according to records obtained by The Commercial Appeal and the Memphis Business Journal.

Part of that original pitch involved Memphis seeking a FERC ruling that would allow it to have power wheeled across TVA's transmission lines from the plant in Alabama.

He also helped arrange meetings between Haney's company and Memphis leaders such as Memphis Mayor Jim Strickland. He and Haney have separately described one another as close friends.

When asked about his involvement in the MLGW power supply process and his relationship with Haney last year, Cohen said, "When anyone’s business interests intersect with my constituents’ interests, that intersection must be beneficial to my constituents for me to act. My concern is for my constituents who bear one of the greatest energy burdens of any city in the country."

Samuel Hardiman covers Memphis city government and politics for The Commercial Appeal. He can be reached by email at samuel.hardiman@commercialappeal.com or followed on Twitter at @samhardiman.

This article originally appeared on Memphis Commercial Appeal: Steve Cohen files bill to end TVA monopoly power in Memphis, Southeast