HEARINGS - JUL 10 AMENDING THE TVA ACT U.S. Congress, Senate BEFORE A SUBCOMMITTEE OF THE UNITED STATES SENATE EIGHTY-FIFTH CONGRESS FIRST SESSION ON S. 1855, S. 1869, S. 1986, and S. 2145 BILLS TO AMEND THE TENNESSEE VALLEY AUTHORITY PURPOSES APRIL 30, JUNE 6 AND 7, 1957 Printed for the use of the Committee on Public Works 57-60673 UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1957 93483 COMMITTEE ON PUBLIC WORKS DENNIS CHAVEZ, New Mexico, Chairman ROBERT S. KERR, Oklahoma EDWARD MARTIN, Pennsylvania ALBERT GORE, Tennessee FRANCIS CASE, South Dakota PAT MCNAMARA, Michigan THOMAS H. KUCHEL, California RICHARD L. NEUBERGER, Oregon NORRIS COTTON, New Hampshire W. KERR SCOTT, North Carolina ROMAN L. HRUSKA, Nebraska JOHN A. CARROLL, Colorado CHAPMAN REVERCOMB, West Virginia SUBCOMMITTEE ON FLOOD CONTROL-RIVERS AND HARBORS ROBERT S. KERR, Oklahoma, Chairman ALBERT GORE, Tennessee FRANCIS CASE, South Dakota PAT MCNAMARA, Michigan THOMAS H. KUCHEL, California RICHARD L. NEUBERGER, Oregon NORRIS COTTON New Hampshire W. KERR SCOTT, North Carolina ROMAN L. HRUSKA, Nebraska JOHN A. CARROLL, Colorado CHAPMAN REVERCOMB, West Virginia II R.V.S.13 Ag 57 HN79 A135 CONTENTS 108 74 Page Biemiller, Andrew J., director, department of legislation, AFL-CIO. 127 Cooper, Senator John Sherman -- Ellis, Clyde T., general manager, National Rural Electric Cooperative Finley, S. R., general superintendent, Electric Power Board of Chatta- Hitch, Tom, president, Tennessee Farm Bureau Federation.. Jones, Floyd, Tennessee Rural Electric Cooperative Association 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.. Smith, Stanton, secretary-treasurer, Citizens for TVA. Stearman, Stanley, assistant legislative analyst, National Society of Sutton, Louis V., Chamber of Commerce of the United States. Swidler, Joseph C., General Counsel TVA.. 215 143 Federation Vogel, Brig. Gen. Herbert D., Chairman of Board of Directors, TVA. 70 Wallace, Porter, Warren Rural Electric Cooperative Corp-- Wessenauer, G. 0., manager of power, TVA. 202 Wise, Louis, cochairman, legislative committee, Mississippi Rural Wright, E. H., president Tennessee Valley Public Power Association. 214 Biemiller, Andrew J., director, department of legislation, AFL-CIO- 129 Burgess, Hon. W. Randolph, Acting Secretary of the Treasury - Campbell, Hon. Joseph, Comptroller General of the United States. 14, 82, 83 158 Ellis, Clyde f., general manager, National Rural Electric Cooperative Financial statement, NRECA.. 189-191 8 119 209 110 Table of differences in bills. TVA Area Notes Economic Advance (news item). Trend of Power Company Common Stock Earnings (graph). 138 12, 82 Wright, E. H., president, Tennessee Valley Public Power Association - 75 raggy 140 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 150 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 |