AMENDING THE TVA ACT !.S. Congress. Senate. HEARINGS BEFORE A - JUL 10 SUBCOMMITTEE OF THE EIGHTY-FIFTH CONGRESS FIRST SESSION ON S. 1855, S. 1869, S. 1986, and S. 2145 BILLS TO AMEND THE TENNESSEE VALLEY AUTHORITY WITH PROCEEDS FROM REVENUE BONDS, AND FOR OTHER APRIL 30, JUNE 6 AND 7, 1957 Printed for the use of the Committee on Public Works 57-60673 93483 UNITED STATES WASHINGTON: 1957 R.V. S. 13 A9 57 HNo79 CONTENTS Biemiller, Andrew J., director, department of legislation, AFL-CIO.. Cooper, Senator John Sherman__ Ellis, Clyde T., general manager, National Rural Electric Cooperative 187 Finley, S. R., general superintendent, Electric Power Board of Chatta- 111 Hitch, Tom, president, Tennessee Farm Bureau Federation. 122 Martin, Senator Edward_-- 108 Peterson, William S., president, American Public Power Association. 85, Robbins, Paul H., executive director, National Society of Professional Sammis, Walter H., president, Ohio Edison Co...- Stearman, Stanley, assistant legislative analyst, National Society of 146 159 126 63 146 149 215 Thompson, Basil, manager, Alabama Electric Cooperative, Inc. - 143. Vogel, Brig. Gen. Herbert D., Chairman of Board of Directors, TVA__ 118 202 Wise, Louis, cochairman, legislative committee, Mississippi Rural 138 Wright, E. H., president Tennessee Valley Public Power Association. 214 Biemiller, Andrew J., director, department of legislation, AFL-CIO.. Burgess, Hon. W. Randolph, Acting Secretary of the Treasury- Campbell, Hon. Joseph, Comptroller General of the United States. 14, 82, 83 Crow, Paul, president, Fort Payne Chamber of Commerce.. Ellis, Clyde T., general manager, National Rural Electric Cooperative 194 Financial statement, NRECA__ 189-191 119 Merriam, Hon. Robert E., Assistant Director, Bureau of the Budget. 12, 82 209, Trend of Power Company Common Stock Earnings (graph) 138 75, AMENDING THE TVA ACT TUESDAY, APRIL 30, 1957 UNITED STATES SENATE, COMMITTEE ON PUBLIC WORKS, SUBCOMMITTEE ON FLOOD CONTROL-RIVERS AND HARBORS, Washington, D. C. The subcommittee met at 10:05 a. m., in room 412, Senate Office Building, Senator Kerr (chairman of the subcommittee) presiding. Present: Senators Kerr, Gore, Martin, Case, Kuchel, Cotton, and Hruska. Also present: Senators Hill, Kefauver, Cooper, Sparkman, and Morton. Senator KERR. The committee will come to order. The hearings this morning are on bills S. 1855, a bill to amend the Tennessee Valley Authority Act of 1933 in order to authorize the Tennessee Valley Authority to undertake certain financing activities and to require certain payments to the United States, and S. 1869, a bill to amend the Tennessee Valley Authority Act of 1933, as amended, and for other purposes. The bills will be incorporated into the record at this point. (S. 1855 and S. 1869 are as follows:) [S. 1855, 85th Cong., 1st sess.] A BILL To amend the Tennessee Valley Authority Act of 1933 in order to authorize the Tennessee Valley Authority to undertake certain financing activities and to require certain payments to the United States, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Tennessee Valley Authority Act of 1933, as amended, is hereby amended by inserting immediately after section 15c thereof (16 U. S. C. 831n-3) the following new section: "SEC. 15d. (a) The Corporation is authorized to issue and sell bonds, notes, and other evidences of indebtedness (in this section collectively referred to as 'bonds') to assist in financing its power program, in an aggregate amount not to exceed $750,000,000 outstanding at any one time, and to refund such bonds. The Corporation may, in performing functions authorized by this Act, use the proceeds of such bonds for the construction, acquisition, enlargement, improvement, or replacement of any plant or other facility used or to be used within the service area of the Corporation for the generation or transmission of electric power (including the portion of any multiple-purpose structure used or to be used for power generation) and for refinancing any such plant or other facility whether originally financed with the proceeds of such bonds or otherwise; or as may be required in connection with the lease, lease-purchase, or any contract for the power output of any such plant or other facility; and for other purposes incidental thereto. Proceeds of such bonds may be used outside such service area if authorized by law after the Corporation has submitted to the Congress and the Bureau of the Budget a request for such authorization. The term 'service area' as used in this subsection means the area regularly served during the month of February 1957 with electric power generated by the Corporation. The principal of and interest on said bonds shall be payable solely from the Corporation's net power proceeds as hereinafter defined. The term 'net power 1 140 |