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TENNESSEE VALLEY AUTHORITY-Continued
Public enterprise funds-Continued
TENNESSEE VALLEY AUTHORITY FUND-Continued search, hasten use of findings, and to avoid duplication. Research results on technological developments and on new and improved processes are made available to industry. Knowledge gained in fertilizer research is valuable also in the related field of munitions. In 1966, research will be continued on the chemistry of fertilizer utilization by plants in the soil, on fertilizers of improved physical and agronomic quality, and on incorporation of micronutrients in fertilizers. Work on finding improved methods for the production of wet-process phosphoric acid will be continued, as will the development of improved liquid fertilizers and fertilizers in fluid suspension. Studies will be continued to improve the materials and methods for dry blending of granular fertilizers. Agronomic research will include use of the stable isotope nitrogen-15 in studying behavior of nitrogen in the soil. Agronomic studies will be made of applying micronutrients in ways to be most beneficial to plants.
(b) Developmental fertilizer production has these objectives: to demonstrate the technical and commercial feasibility of new or improved processes, thereby encouraging their adoption by industry; to supply materials for widespread educational introduction among farmers; and to supply munitions materials or render other services for national defense.
(c) Demonstration and educational introduction of TVA fertilizers is carried on cooperatively with the land-grant colleges and includes carefully controlled small plot demonstrations, tests and demonstrations of fertilizer materials and practices on selected operating farms, and widespread educational introduction of fertilizers, which is also conducted in cooperation with commercial fertilizer manufacturers, distributors, and dealers. Farmers and the fertilizer industry pay for the fertilizers used. The price is dependent upon the novelty of the material or practice, the nature of the demonstration, and the value of the plant nutrient content as measured by commercial fertilizer prices. Agricultural extension services of the land-grant colleges give educational and technical guidance in demonstrating and introducing new fertilizers and fertilizer practices in the participating States. Studies and investigations are conducted to provide information for planning, conducting, and appraising agricultural development
Capital outlay costs for chemical facilities are estimated at $5,316 thousand in 1966. Most of this is for continuation of projects begun in prior years as part of a rehabilitation program which was started in 1960. Facilities to be completed in 1966 include an integrated unit for production of granular nitrogen and compound fertilizers, modernization of bathhouse and sanitary facilities, pilot-plant building improvements, and facilities for storing phosphoric acid. During 1966 work will be continued on modernization of TVA's phosphate facilities, largely starting replacement of equipment for preparing charges for electric phosphorus furnaces.
3. Cooperative valley development. Special attention to selected areas of the Tennessee Valley region, in particularly close cooperation with State and local agencies and with tributary area associations, constitutes an additional phase of TVA's program for the proper use, conservation, and development of the region's natural resources. Investigations identify current problems and opportunities
Cooperative valley development activities are of three principal types: forestry projects, mineral resources investigations, and tributary area development. The category also includes a small research activity directed toward disposal of organic wastes as soil amendments.
(a) Forestry projects aid the States, counties, landowners, and the timber industry in making full use of the existing forest resource of the valley and of developing it for maximum long-term production of quality timber, consistent with the needs of watershed protection. Forestry projects include appraisals of the quality and quantity of the forest resource and research and demonstrations in forest management, reforestation, industrial wood use, forest tree improvement, forest fertilizer tests, and strip mine reclamation.
(b) Mineral resources investigations will continue in 1966 in cooperation with State agencies, with emphasis on economic geology and the preparation in cooperation with State agencies of geologic maps essential to the development of regional minerals.
(c) Tributary area development is a comprehensive and concentrated approach to resource development in areas of the Tennessee Valley where special problems inhibit economic growth, where specific opportunities exist for further development of the resource base, and where local groups have organized to deal with problems of economic advancement and area improvement. In 1966 TVA will work closely with organized groups in 14 tributary areas.
(d) Disposal of organic wastes as soil amendments will be continued as a study in cooperation with the Public Health Service.
4. Land Between the Lakes demonstration.-The 1966 budget program includes provision for continuing development, as a demonstration of new ideas in public outdoor recreation and conservation education, of an area in western Kentucky and Tennessee of approximately 170,000 acres, situated between TVA's Kentucky reservoir and the Corps of Engineers' Barkley Lake. Offering the innumerable recreational advantages associated with
300 miles of cove-studded shoreline, Land Between the
lagging economy of the surrounding area by encouraging Net expense.....
5. General service activities.-Operating costs for general service activities cover primarily topographic mapping and reimbursable services furnished at the request and expense of other agencies.
GENERAL SERVICE ACTIVITIES-SUMMARY OF ESTIMATED
GENERAL Service ACTIVITIES-SUMMARY OF ESTIMATED
[In thousands of dollars]
Total operating costs, funded..... 8,176
Total operating costs.
Topographic maps of the Tennessee Valley are vital to TVA's planning, construction, and operations needs. In order to be of practical utility, these maps, which now cover the entire Tennessee Valley, must be revised periodically. The estimate for 1966 includes $268 thousand for those maps which most urgently need revision and which are most necessary for regional development purposes at this time.
The 1966 estimate of $4,605 thousand for reimbursable services includes $2,268 thousand for construction and operating activities on an experimental gas-cooled reactor project for the Atomic Energy Commission at Oak Ridge, Tenn.; $643 thousand for mapping services for the Department of the Army and other agencies; $282 thousand for technical advisory assistance to power distributors; and $175 thousand for services for the Department of Defense for maintenance in standby of the Muscle Shoals phosphate development works. The balance is for loans of personnel and services to other agencies and miscellaneous recoveries of TVA expenditures, including backcharges to vendors for repairs by TVA to damaged structures or equipment.
Capital outlay costs are estimated at $4,430 thousand for general facilities in 1966. This covers additions and replacements of office, transportation, and electronic computing equipment and facilities used jointly in conducting all TVA programs. The 1966 estimate includes $328 thousand for design of a new medical and general service center at Wilson Dam, Ala., to replace present facilities some dating back to World War I; and $670 thousand for continuing design work on a power dispatching center and general office building to be located on Chickamauga Dam reservation in the vicinity of Chattanooga, Tenn., for occupancy by TVA personnel stationed in the Chattanooga area.
APPLICATION OF APPROPRIATIONS--Continued [In thousands of dollars]
2. Fertilizer, agricultural, and munitions development program....
3. Cooperative valley development program
4. Land Between the Lakes demonstration__ 5. General service activities...........
1. River and power development program:
New lock at Guntersville Dam...
Nickajack Dam and Reservoir...
Beech River multipurpose water control
Melton Hill Dam and Reservoir....
Additions and improvements at existing multiple-use facilities..........
Investigations for future facilities..
2. Fertilizer, agricultural, and munitions development program: Chemical facilities..
4. Land Between the Lakes demonstration... 5. General service activities: General facilities.
Power operations: Revenue and receipts.. Expense....
Flood control operations: Expense___
Multipurpose reservoir operations not allocated:
6,815 2,053 15
Net operating expense, navigation operations..
4,144 2,474 663
Total capital outlay...-----.
7,020 5,774 4,000 4,833 9,900 3,125 1,890 3,014 33,480 32,356 42,657 47,142 47,915 58,952 4,565 3,267 -3,267
Total appropriation..... Unobligated balance brought forward. Unobligated balance carried forward..
Obligations against appropriated funds.... 48,440 51,182 58,952
1965 1966 estimate estimate
7,452 7,452 2,511 2,764 618 297
Net operating expense, multipurpose reservoir operations not allocated...
Surveys and studies for river development: Expense...
2,031 600 1,100
Revenue, Expense, and Retained Earnings (in thousands of dollars)
285,651 292,689 320,484
Net income, power operations...-
58,183 51,000 54,702
616,375 634,352 642,752
Retained earnings, start of year......
Retained earnings, end of year..
634,352 642,752 655,254
Operating results and financial condition.-Retained earnings from power operations at the end of 1966 are estimated at $655,254 thousand. Net income from power operations in 1966 is estimated at $54,702 thousand. The accumulated net expense of nonpower programs at the end of 1966 is estimated at $325,199 thousand, of which $21,909 thousand is from 1966 operations. Only the power program is intended to be self-supporting; the net expense of nonpower programs is covered largely by appropriations from the Treasury. Payments to the Treasury in 1966 are estimated at $57.2 million-$42.2 million as a dividend (return on the appropriation investment in the power program) and $15 million as a reduction in the appropriation investment in the power program.
Total assets are estimated at $2,739,183 thousand at the end of 1966 as compared with an estimate of $2,635,656 thousand at the end of 1965-an increase of $103,527 thousand during 1966. The increase is mainly in fixed assets, reflecting expenditures for construction of facilities; $57,092 thousand of the increase in assets is in the power program and $46,435 thousand is in nonpower programs. The estimate of current liabilities of $62,255 thousand at June 30, 1966, is $18,982 thousand greater than the estimate of $43,273 thousand at June 30, 1965. The increase reflects liabilities mainly related to construction. Borrowings from the public for the power program are expected to increase by $75 million during 1966-from an estimate of $220 million at June 30, 1965, to an estimate of $295 million at June 30, 1966. The estimated total Government equity of $2,381,312 thousand at June 30, 1966, is $9,545 thousand more than the estimate of $2,371,767 thousand at June 30, 1965. The change represents a major part of the increase in investments in assets financed from sources other than borrowings.
1965 1966 estimate estimate
1 2 4,292 4,584 -4,291 -4,582 -4,913 -4,291 -4,582 -4,913 -3,651 -3,583 -3,689 -3,651 -3,583 -3.689
2 1 4,915 4,292 4,584 4,915
285,651 292,689 320,484 227,468 241,689 265,782
58,183 51,000 54,702
616,375 634,352 642,752 -40,206 -42,600 -42,200
634,352 642,752 655,254
1965 1966 estimate estimate