TENNESSEE VALLEY AUTHORITY FINANCING HEARINGS 4 OCT 17 BEFORE A SUBCOMMITTEE OF THE -1955 COMMITTEE ON PUBLIC WORKS EIGHTY-FOURTH CONGRESS FIRST SESSION ON S. 2373 A BILL TO AMEND THE TENNESSEE VALLEY AUTHORITY 66466 JULY 21, 22, AND 27, 1955 Printed for the use of the Committee on Public Works UNITED STATES WASHINGTON: 1955 COMMITTEE ON PUBLIC WORKS DENNIS CHAVEZ, New Mexico, Chairman ROBERT S. KERR, Oklahoma RICHARD L. NEUBERGER, Oregon EDWARD MARTIN, Pennsylvania SUBCOMMITTEE ON FLOOD CONTROL-RIVERS AND HARBORS ALBERT GORE, Tennessee II FRANCIS CASE, South Dakota Copy 2 CONTENTS 5! Statement of- Page ingnam, Ames, Charles T., Tennessee Valley Public Power Association----- 182 League__ 193 Dempster, Hon. George R., mayor of Knoxville, Tenn 181 238 Finley, S. R., general superintendent, Electric Power Board of Chat- Hooper, W. E., president, American Public Power Association 185 erative Association_ 130 Kampmeier, R. A., assistant manager of power, TVA 173, 206 Marquis, Robert H., Assistant General Counsel, TVA 181 Paty, Hon. Raymond R., member, Board of Directors, TVA------ 49 185 Sammis, Walter H., president, Ohio Edison Co-- 145 Schwartz, Carl, Jr., Resource and Civil Works Division, Bureau of 23 Smith, Richard W., manager, natural resources department, Chamber of Commerce of the United States. 131 Sutton, Luois V., Chamber of Commerce of the United States------- 131 93, 114, 206 Burgess, Hon. W. W. Randolph, Acting Secretary of the Treasury Campbell, Hon. Joseph, Comptroller General of the United States Neff, Allison, C., president, National Society of Professional Engi- neers. 208 Results of the operations of the TVA (table) TENNESSEE VALLEY AUTHORITY FINANCING THURSDAY, JULY 21, 1955 UNITED STATES SENATE, SUBCOMMITTEE ON FLOOD CONTROL, RIVERS AND HARBORS, Washington, D. C. The subcommittee met at 10:30 a. m., pursuant to notice, Senator Robert S. Kerr, chairman of the subcommittee presiding. Present: Senators Kerr (chairman), Gore, Thurmond, McNamara, Case, Cotton, and Hruska. Senator KERR. We will now proceed with the hearing on S. 2373, a bill amending the Tennessee Valley Authority Act. I would like to put the text of the bill into the record. (The above-mentioned bill is as follows:) [S. 2373, 84th Cong., 1st sess.] A BILL To amend the Tennessee Valley Authority Act of 1933, as amended, 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 last three paragraphs under the subtitle "INDEPENDENT AGENCIES AND CORPORATIONS" in the title II of the Government Corporations Appropriation Act, 1948 (61 Stat. 576-577), are hereby repealed; and the Tennessee Valley Authority Act of 1933, as amended, is hereby amended by inserting immediately after section 15c thereof (16 U. S. C., sec. 831n-3) the following new section: "SEC. 15d. (a) The Corporation is authorized, without regard to the provisions of section 303 (a) of the Act of December 6, 1945 (59 Stat. 601-602; 31 U. S. C., sec. 868 (a)), to issue and sell bonds, notes, and other evidences of indebtedness (hereinafter collectively referred to as "bonds") to assist in financing its power program and to refund such bonds. The Corporation may 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 for the generation or transmission of electric power (including the portion of any multiple-purpose structure used or to be used for power generation) 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 incidental purposes. The principal of and interest on said bonds shall be payable solely from the Corporation's net power proceeds as hereinafter defined. Net power proceeds are defined for purposes of this section as the remainder of the Corporation's gross power revenues after deducting the cost of operating, maintaining, and administering its power properties (including costs applicable to that portion of its multiplepurpose properties allocated to power) and payments to States and counties in lieu of taxes but before deducting depreciation accruals or other charges representing the amortization of capital expenditures, plus the net proceeds of the sale or other disposition of any power facility or interest therein, and shall include reserve or other funds created from such sources. Notwithstanding the provisions of section 26 of this Act or any other provision of law, the Corporation may pledge and use its net power proceeds for payment of the principal of and interest on said bonds, for purchase or redemption thereof, and for other purposes incidental thereto, including creation of reserve funds and other 1 |